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QUESTION:18[QUESTION BANK ID:61783]TYPE:MULTIPLE CHOICECORRECTWhen demand for a product falls, which of the following events would you NOT necessarily expect to occur?<< HIDE ANSWERSAA decrease in the quantity of the product suppliedBA decrease in its priceCA decrease in the supply of the productDA leftward shift of the demand curve
QUESTION:19[QUESTION BANK ID:109579]TYPE:MULTIPLE CHOICECORRECTIn the spring and summer of 1993, Chronic Wasting Disease wiped out 25% of the elk herd in Wyoming, and the number of state hunting licenses issued was reduced accordingly. In order to compensate for the decrease in license issuances, Wyoming dramatically increased the price. Unfortunately, this strategy proved unsuccessful as the state reported a 50% decrease in total elk license revenues for '93. Which of the following most accurately describes this economic situation?<< HIDE ANSWERSAQUESTION:20[QUESTION BANK ID:16539]TYPE:MULTIPLE CHOICECORRECTA company currently sells 60,000 units a month at $10 per unit. The marginal cost is constant at $6 up to 100,000 units per month. The company is considering raising the price by 10% to $11. If the price elasticity of demand is constant and ______ in that price range, then profits would increase if they raise the price to $11.<< HIDE ANSWERS
QUESTION:21[QUESTION BANK ID:89965]TYPE:MULTIPLE CHOICECORRECTA brewery is considering two potential production investments. Option A costs an initial $2 million and will involve constant marginal cost of $5 Option B costs an initial $4 million and will involve constant marginal cost of $3 In order to make the calculations simple, assume that the annual capital cost is 10% of the totalinvestment. At what production quantity per year would the brewery be indifferent between these two investment opportunities?<< HIDE ANSWERS