The fact that consumers often react more to changes in the posted price of a good as compared to changes in the sales tax that is not posted is an example of

The trends displayed in the table can best be explained by

A) service industries have increased as a proportion of the economy and they tend to have higher nominal wage rates. B) the inflation rate has been rising over the time period. C) the real wage rate has increased at a rate about equal to the inflation rate. D) the nominal wage rate has increased at a rate about equal to the inflation rate. E) None of the above can explain the trends in the figure.

The industry for personal care products in Richland is monopolistically competitive in nature. The firms in this industry earn positive economic profits in the short run

Do the firms continue to earn positive profits in the long run? Explain your answer.