Which of the following statements is true about the impact of an increase in the price of lettuce ?

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If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is ?

A. a normal good B. none of these answers C. an inferior good D. a substitute good...

A shift in supply will have more effect on price than quantity if ?

A. The price elasticity of supply is – 3 B. The price elasticity of supply is – 0.2 C. The price elasticity of supply is – 2 D. The price elasticity of supply is infinity...

A natural monopoly has a declining _______ over a large range of output?

A. long run marginal cost B. short run marginal cost C. long run average cost D. long run marginal cost...

The price mechanism cannot ?

A. Act as a signal B. Act as a incentive C. Act as a rationing device D. shift the demand curve...

The government is considering placing a tax on cigarettes to raise revenue to finance health-care benefits. The demand for cigarettes is price inelastic Which of the following statements is True ?

A. This tax will not raise much revenue either in the short term or the long term since demand is price inelastic B. The tax on cigarettes may not raise as much revenue as anticipated in the years to com because the demand for cigarettes is likely to become more elastic over time. C. This … The government is considering placing a tax on cigarettes to raise revenue to finance health-care benefits. The demand for cigarettes is price inelastic Which...