Most supermarkets charge the same price for the majority of goods sold. This suggest that
A) the large supermarket chains are price leaders and smaller grocers take these prices as given.
B) mark-ups reflect the degree of competition in the supermarket industry.
C) supermarkets have colluded to fix prices on most of the goods sold.
D) the government regulates prices of most products sold in supermarkets.
B
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A simplifying assumption
a. affects the important conclusions of an economic model b. increases the level of detail in an economic model c. makes an economic model a more concrete representation of reality d. eliminates unnecessary details from an economic model e. limits the validity of an economic model's conclusions
If the Fed wishes to decrease the money supply it could
a. decrease the discount rate. b. decrease reserve requirements. c. sell government securities on the open market. d. Do any of the above.