When the home country is small, how will an increase in a tariff protecting a home monopolist affect the home country's demand curve?
a. There will be an upward parallel shift in the demand curve.
b. The demand curve will pivot upwards from its vertical intercept.
c. There will be a downward parallel shift in the demand curve.
d. The demand curve will pivot downwards from its vertical intercept.
Ans: a. There will be an upward parallel shift in the demand curve.
You might also like to view...
Assume there is an increase in the number of consumers in the market for a good sold by perfectly competitive firms that are initially producing the profit-maximizing level of output. For the individual firm, this would result in:
A) a decrease in both price and the profit-maximizing quantity of output. B) a decrease in price and increase in the profit-maximizing quantity of output. C) an increase in both price and the profit-maximizing quantity of output. D) an increase in price and decrease in profit-maximizing quantity of output.
James used $200,000 from his savings account that paid an annual interest of 10% to purchase a hardware store. After one year, James sold the business for 300,000 . His accounting profit is:
a. $300,000 b. $100,000 c. $80,000 d. $20,000