Why does a new hardcover Stephen King novel have a higher price than the paperback edition?
A) It costs more to produce.
B) The elasticity of demand differs.
C) The publisher is more greedy when marketing the hardcover edition.
D) The publisher is a price searcher on the hardcover editions and a price taker on the paperback editions.
B
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When the tax to fund a government project is allocated among voters in proportion to the benefits they receive from the project,
a. productive (efficient) projects will tend to be opposed by a majority of voters. b. counterproductive (inefficient) projects will often be favored by a majority of voters. c. projects that are productive (efficient) will tend to be favored by an overwhelming majority of voters. d. democratic political decision making can be expected to work poorly.
Suppose that the central bank unexpectedly increases the growth rate of the money supply. In the short run the effects of this are shown by
a. moving to the left along the short-run Phillips curve. b. moving to the right along the short-run Phillips curve. c. shifting the short-run Phillips curve to the right. d. shifting the short-run Phillips curve to the left.