Refer to the above figure. If the government uses rate-of-return regulation for the natural monopolist, the firm will charge price
A. P1 and sell Q4 units.
B. P3 and sell Q3 units.
C. P5 and sell Q1 units.
D. P2 and sell Q1 units.
Answer: B
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Last year in a small economy, consumption spending was $12,000, investment spending was $3,500, government spending was $4, 000, exports were $1,150, and imports were $1,350. What was GDP for this economy last year?
What will be an ideal response?
The cross elasticity of demand between apples and oranges is defined as the
A) percentage change in the quantity of apples demanded divided by the percentage change in the price of oranges. B) price elasticity of demand for apples divided by the price elasticity of demand for oranges. C) percentage change in the quantity of apples demanded divided by the percentage change in the quantity of oranges demanded. D) change in the quantity of apples demanded divided by the change in the quantity of oranges demanded.