Assume that the marginal propensity to consume out of disposable income is 0.8 and that the government taxes all income at a constant rate of 30%. If the gross income increases by $100, consumption will initially increase by

How do oligopolistic firms that sell differentiated products determine their prices?

What will be an ideal response?

An individual who drives a car without a muffler in an attempt to increase fuel economy is creating

a. a positive externality b. a public good c. a negative externality d. a winner's curse e. vertical inequity