Cartels display a pronounced tendency to disintegrate over time because
A) increased profits induce laziness and carelessness among cartel members.
B) nobody benefits in the long run from their operation since they merely redistribute wealth.
C) their operation is so blatantly contrary to the public interest.
D) there are so many margins on which competition can occur.
D
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The sensitivity of the change in quantity consumed of one good to a change in the price of a related good is called
A) cross-elasticity. B) substitute elasticity. C) complementary elasticity. D) price elasticity of demand.
Refer to the above figure. How do you describe what is happening as the economy moves from point A to point B?
A) The economy has acquired new resources that are well suited for producing wool. B) Land that was once used to grow wheat is now being used to graze sheep. C) The economy is producing more bread by choosing to produce less wool. D) The technology for growing wheat has improved.