If the price of natural gas rises, when is the price elasticity of demand likely to be the highest?
a. immediately after the price increase
b. one month after the price increase
c. three months after the price increase
d. one year after the price increase
d
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Refer to Tax Problem. The deadweight loss due to a $10 per unit consumption tax is
Consider a perfectly competitive market were demand is Q = 100 - P and Supply is Q = P - 10. a. zero. b. $10. c. $25. d. $50.
When the marginal product ________, the marginal cost ________
A) increases; remains the same B) remains the same; increases C) increases; increases D) increases; decreases
Suppose a market has only one seller and only one buyer of a good in the market. The buyer is willing to pay $50 for the good and the seller is willing to accept $15. The market price of the good is determined at $30
If they trade, the social surplus will be ________. A) $15 B) $35 C) $45 D) $65
In the long run, perfectly competitive firms cannot earn an economic profit
Indicate whether the statement is true or false