Refer to Figure 19-6. Which of the following would cause the change depicted in the figure above?
A) Dumping accusations result in the United States placing tariffs on produce imported from Mexico.
B) An increase in investment in infrastructure causes U.S. productivity to rise relative to Mexican productivity.
C) A declining preference for Kentucky bourbon causes Mexican consumers to decrease their preferences for U.S.-produced alcohol relative to Mexican-produced alcohol.
D) A contractionary monetary policy causes a decrease in the price level of U.S. goods relative to Mexican goods.
C
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Which of the following is NOT a requirement for a firm to be able to price discriminate?
A) monopoly power B) groups of customers with different willingness to pay for the good C) economies of scale D) ability to keep the members of different customer groups separate E) ability to prevent resales of the product by customers
Suppose we observe a substantial increase in the price of a good, and, at the same time, an increase in the quantity of the good demanded. What can we conclude?
A) The law of supply is untrue. B) Consumers haven't followed the law of demand. C) The demand curve has shifted to the right. D) The good is a luxury good.