If Brazil's gross revenue from coffee exports doubles from one year to the next even though the number of bags of coffee exported declines 50 percent,
A) individual Brazilian coffee producers are price searchers.
B) individual Brazilian coffee producers have substantial market power.
C) the demand for Brazilian coffee is most likely elastic.
D) the demand for Brazilian coffee is most likely inelastic.
D
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Price cap regulation involves
A) setting the monopoly's price equal to its average total cost. B) setting the monopoly's price equal to its profit-maximizing price. C) setting a maximum price the monopoly may charge. D) assuming a natural monopoly will not charge a higher than profit-maximizing price. E) setting the monopoly's price equal to its marginal cost.
In an economy with perfect capital mobility, if domestic interest rates are above world interest rates then
a. capital outflows will drive domestic interest rates down. b. capital inflows will drive domestic interest rates down. c. current account deficits will drive domestic interest rates down. d. the central bank will have to intervene even if exchange rates are floating.