In 2002 the steel industry successfully lobbied Congress to impose a tariff of 8 to 30 percent on foreign steel. Which of the following is an unintended consequence of this tariff?
(a) U.S. steel firms were protected from the price cutting efforts of foreign competitors benefiting from governmental support in their countries.
(b) U.S. steel firms could charge higher steel prices in order to boost profits.
(c) Many steel-using firms in the U.S. went out of business and about 200,000 workers lost their jobs to higher steel prices.
(d) American steel workers kept their jobs.
(c)
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Johnny's Shop-and-Pay is a regional grocery chain, and their marketing manager is trying to determine the profit-maximizing coupon program for the store's laundry detergent brand
Coupon users at the store have an elasticity of demand for this product that equals -3, and the elasticity of demand for non-users of the coupon for the store brand equals -1.5. If the full retail (undiscounted) price of the detergent is $10 per box, what is the optimal discount to provide for coupon users? A) 25% off B) 50% off C) 75% off D) The optimal strategy is to charge the same price to both groups
Distinguish between demand and quantity demanded. Do the same for supply and quantity supplied.
What will be an ideal response?