The market-friendly approach to development emphasizes
a. self-interested behavior of public officials in LDCs.
b. the dependence of LDCs on former colonial powers.
c. the inherent efficiency of markets in developing countries.
d. that markets in LDCs fail sometimes and selective interventions can promote economic development.
D
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Demand in the apricot market can be expressed as P=100-Q. Further, the supply function in the apricot industry is P=10+Q. If a social planner specifies that 30 units be produced, is that level of production efficient? Can you propose a more efficient level of production? Explain why your proposed level is better than that of the social planner.
What will be an ideal response?
You own a small store. Your cashier thinks you should raise prices to increase your total revenue and your customer thinks you should lower prices to increase your total revenue
The cashier thinks the price elasticity of demand is ________ and the customer believes the price elasticity of demand is ________. A) inelastic; elastic B) elastic; inelastic C) elastic; elastic D) inelastic; inelastic E) unit elastic; elastic
If the cross price elasticity of demand between two goods is negative, then the two goods are
A) substitutes. B) complements. C) unrelated. D) independent.
Which of the five goods, A to E, whose price elasticities of demand are shown in the choices below, is the best candidate to tax if the goal is to acquire maximum tax revenue?
a. good A, with price elasticity of 0.90 b. good B, with price elasticity of 3.40 c. good C, with price elasticity of 1.25 d. good D, with price elasticity of 0.50 e. good E, with price elasticity of 1.00