In the model of perfect competition, the market demand curve is found by
A. horizontally summing the demand curves of individual consumers.
B. horizontally summing the supply curves of individual firms.
C. a marketing analysis.
D. taking the demand curve of a "representative consumer" and expanding it by the number of consumers of the good.
Answer: A
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If a firm offers a senior citizen discount
A) the firm expects the average senior citizen to have a lower price elasticity of demand. B) the firm expects the average senior citizen to have a higher price elasticity of demand. C) senior citizens may be offended. D) it may be prosecuted for discrimination.
Which of the following statements is TRUE?
A) A growing economy should see a decline in relative poverty but not in absolute poverty. B) A growing economy should see a decline in absolute poverty but not in relative poverty. C) A growing economy should see a decline in both absolute and relative poverty. D) A growing economy is usually unrelated to changes in either absolute or relative poverty.
Discretionary funds are typically used by the Executive Branch and Congress for activist fiscal policies
Indicate whether the statement is true or false
What are the tools that a country can use to restrict international trade?
What will be an ideal response?