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Question
Successful advertising
a. generally causes a firms costs to fall.
b. generally causes industry costs to fall.
c. normally causes demand for the firm to shift right.
d. normally causes industry demand to shift left.
e. normally causes consumers to buy things for which they have no use.
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.
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c. government setting up an agency to regulate supply of
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The economic entity most likely to engage in price gouging is
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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.
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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.
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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?
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Taxing goods with very inelastic supply generates less deadweight loss than taxing goods with very elastic supply because
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a. Demand for jelly will increase along with the price.
b. Demand for jelly will decrease along with the price.
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e. The supply of jelly will decrease and the price will increase.
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Q:
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