In a perfectly competitive industry, influence over price is exerted by:
a. individual sellers
b. individual buyers.
c. the largest firms.
d. the forces of market supply and demand.
d
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The introduction of word processing software that increases the demand for workers with computer skills relative to those without such skills is an example of:
A. skill-biased technological change. B. increasing reservation prices. C. the diminishing marginal product of labor. D. globalization.
A model that is composed of many equations that show the channels through which monetary and fiscal policy affect aggregate output and spending is called a
A) reduced-form model. B) median-voter model. C) informed median-voter model. D) structural model.
A movie monopolist sells to students and adults. The demand function for students is QdS = 600 - 100P and the demand function for adults is QdA = 1,200 - 100P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge adults to maximize profits?
A. $4 B. $7 C. $6 D. $12
It is Valentine's Day and Jason is desperately looking all over town for a dozen roses to give to Judy. Most likely, Jason's price elasticity of demand is:
a. infinitely large. b. negative. c. equal to one. d. greater than one. e. less than one.