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Question
Holding all else constant, an increase in the market demand for a product in a competitive market would cause
a. the average total cost (ATC) curve of the firms to increase.
b. a decrease in the price a firm could charge for the product.
c. the marginal revenue (MR) curve of the firms to increase.
d. the marginal cost (MC) curve of the firms to increase.
e. a decrease in profits for a firm.
Answer
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Related questions
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b. relatively unresponsive to a change in price.
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e. completely responsive to a change in price.
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Price gouging laws will usually result in ________ the product in the distressed market.
a. more supply of
b. more local business start-ups to supply
c. government setting up an agency to regulate supply of
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Q:
The economic entity most likely to engage in price gouging is
a. the manufacturer of the product, such as a Honda generator.
b. a national big-box store, such as Target or Walmart.
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Q:
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b. society faces a trade-off between homelessness and rent control.
c. one must give up something in order to get something else.
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What will an individual do differently as a buyer in the black market in the long run?
a. He or she will substitute away from the product.
b. He or she will substitute toward the product.
c. When a binding price floor exists, he or she will be willing to pay a higher price.
d. When a binding price ceiling exists, he or she will be willing to pay a lower price.
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Q:
What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
c. A shortage will continue to exist and will grow larger over time.
d. A shortage will continue to exist and will grow smaller over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
a. Prices in the legal market in the community with a binding price ceiling will rise.
b. Prices in the legal market in the community with a binding price ceiling will fall.
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b. The binding price ceiling will discourage patients from obtaining the drugs they need.
c. The binding price ceiling will increase the likelihood that consumers will obtain needed drugs on the black market.
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One strategy someone might use to be elected mayor of a university town is to place a binding price ceiling on rent for student apartments. What will happen if he or she gets elected and is able to pass such a law?
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Q:
Suppose Kate lives in a community with no price controls. What could she expect will happen if her town borders a community where there is a nonbinding price ceiling on most products?
a. Legal market prices will rise in the community with a binding price ceiling.
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Q:
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b. because it greatly benefits government, which receives additional tax revenue as a result
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Taxing goods with very inelastic demand generates less deadweight loss than taxing goods with very elastic demand because
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A(n) ________ in the elasticity of supply or demand in a market for a good that is taxed would tend to ________ who is legally responsible for paying the tax.a. decrease; broaden b. decrease; have no effect on c. increase; broadend. increase; narrowe. increase; have no effect on
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a. Demand for jelly will increase along with the price.
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e. The supply of jelly will decrease and the price will increase.
Q:
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Q:
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Q:
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