Dawn's bridal boutique is having a sale on evening dresses. The increase in consumer surplus comes from the benefit of the lower prices to
a. only existing customers who now get lower prices on the gowns they were already planning to purchase.
b. only new customers who enter the market because of the lower prices.
c. both existing customers who now get lower prices on the gowns they were already planning to purchase and new customers who enter the market because of the lower prices.
d. Consumer surplus does not increase; it decreases.
c
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An incentive
A) could be a reward but could not be a penalty. B) could be a penalty but could not be a reward. C) could be either a reward or a penalty. D) is the opposite of a tradeoff.
Which of the following are risks for multinational corporations but not risks for domestic corporations?
A) changes in government rules and regulations B) capital controls C) changes in tax laws D) government red tape and corruption