Assume that a city can earn an additional $100,000 of revenue each year from using drones to catch speeding drivers. What must the additional cost of using drones to catch speeders be to make this economically rational?

Describe the changes in the variables that will cause supply for a product to increase, shifting the supply curve down and to the right

What will be an ideal response?

If two identifiable markets differ with respect to their price elasticity of demand and resale is impossible, a firm with market power will

A) set a higher price in the market that is more price elastic. B) set a lower price in the market that is more price elastic. C) set price so as to equate the elasticity of demand across markets. D) set price equal to marginal cost in both markets.