A product's price elasticity of demand depends critically on the availability of substitutes
Indicate whether the statement is true or false
TRUE
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As a result of establishing a legal minimum wage above the market clearing wage
A) there will be a shortage of workers. B) firms will hire fewer workers. C) firms will hire more workers. D) fewer workers will want to work.
Which of the following is true according to the IO perspective?
a. Industry structure determines firm conduct which in turn determines firms' performance b. Industry structure determines firm performance which in turn determines firms' conduct c. Industry conduct determines firm structure which in turn determines firms' performance d. Industry performance determines firm conduct which in turn determines firms' structure
In monopoly:
a. consumers are confronted with a price that is lower than average total cost. b. consumers will buy more of the good than is economically efficient. c. consumers are confronted with a price that is lower than marginal cost. d. a basic condition for efficiency is violated be
If the reserve requirement is 20 percent and the Fed buys $10,000 worth of Treasury bonds, what is the change in the banks' total reserves?
A) $2,000 B) $20,000 C) $8,000 D) $100,000 E) $10,000