Medical authorities announced in the late 1980s that an acne medicine named Retin-A also had previously unknown wrinkle-reducing properties. An economist would expect to find that, after this announcement, the price of Retin-A ____ and the quantity sold ____
a. rose; fell
b. rose; rose
c. fell; fell
d. fell; rose
b
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The time cost incurred by consumers who must find substitute products after a ban is placed on some good or service is an example of a(n)
a. capital cost d. operating expense b. fixed cost e. implicit cost c. explicit cost
When the price of good X rises, the demand for good Y falls. Explain what this relationship implies about the two goods
What will be an ideal response?
The price elasticity of supply of hot dog buns is estimated to be 1.5. Holding everything else constant, this means that a 10 percent decrease in the price of hot dog buns will cause the quantity of hot dog buns supplied to decrease by
A) approximately 25 percent. B) 1.5 percent. C) approximately 5 percent. D) 15 percent.
true/false- the smaller the MPC, the larger the multiplier
a. true b. false