DeBeers was able to profit the most from the diamond market by selling: a lot of diamonds at high prices. a lot of diamonds at low prices. a few diamonds at low prices. few diamonds at high prices.

Q: Negative externalities lead markets to produce greater than efficient output levels and positive…

A: Externalities are the costs or benefits that affect a party who did not choose to incur that cost or…

Q: In the short run, open-market purchases A) increase investment and real GDP, and decrease interest…

A: The money market equilibrium is where the money demand curve intersects the money supply curve. The…

Q: For each of the following scenarios, use the supply and demand graph to demonstrate the resulting…

A: The equilibrium real interest rate is the point where the amount of savings matches the level of…

Q: Use the table below to answer the following question. Number of Units A) 95 B) 47.5 190 90 1 2 3 4 5…

A: The table below represents the utility at different levels of units:Number of units Total…

Q: The monopolistically competitive seller's demand curve will tend to become more elastic the:…

A: In a monopolistically competitive there are many firms that offer competing products or services…

Q: The following graph is the production possibilities curve of a nation. Drill Presses 0987654321 10…

A: PPF is the production possibility frontier. PPF shows the production possibility of two goods in an…

Q: If an oligopoly market is contestable and new firms enter, the  Former oligopolists will raise…

A: Contestable Market:A contestable market is a market structure in which there are low barriers to…

Q: When Main Street Bank buys new automatic teller machines, the quantity of land and natural resources…

A: An individual within the economy who decides to purchase assets can have a direct influence over the…

Q: what is the uderlying assumption of income GDP?

A: In an economy, any change in investment spending will have an impact on aggregate demand because…

Q: Price $14 $12 $10 $8 $6 $4 $2 $0 0 400 800 600 1000 100 200 300 400 Quantity 500 D 600 700 The…

A: The market for the donuts is given as The equilibrium price is $7 and the quantity is 300 units.The…

Q: Which of these are consequences of an increase in long-run aggregate supply? an increase in…

A: Supply is defined as the stock of goods available on the market. The producers will produce goods on…

Q: A nation can produce two products: tanks and autos. The table below is the nation's production…

A: PPF is the production possibility frontier. PPF shows the production possibility of two goods in an…

Q: A market has a demand function given by the equation Qd = 180-2P, and a supply function is given by…

A: At the equilibrium price, the quantity demanded is equal to the quantity supplied. Equilibrium…

Q: At a business cycle trough, cyclical unemployment is A. high; zero B. zero; low C. negative;…

A: Unemployment refers to a situation where an individual or group of individuals belonging to the…

Q: An increase in the demand for gasoline O leads to an increase in consumption and potential GDP.…

A: Potential Gross Domestic Product (GDP), which means potential output or full-employment GDP, is an…

Q: 1. The AIA Car Wash is a representative firm in a purely/perfectly competitive, constant-cost…

A: The market refers to a place in which producers and consumers interact to determine the equilibrium…

Q: Perez Lumber Company sells surfboards in a perfectly competitive market. The marginal cost of…

A: A perfectly competitive firm:In a perfect competition, there are many sellers and buyers, thus the…

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A: There are three categories of goods - Desserts , Liquor & Coffee Following are production and…

Q: A Chinese high technology manufacturing firm has a production function of q=16L0 0.80K0.20 (based on…

A: In economics, the cost of creating each new unit of a commodity or service in the short run is shown…

Q: Consider a sequential game between a shopkeeper and a haggling customer. The party who moves first…

A: A customer refers to the person who decides to accept a deal based on some conditions is called as a…

Q: Westchesser Gloves is a monopolistically competitive firm that sells leather gloves. Use the graph…

A: The monopoly market structure is defined as the single seller of a good fixing its own price based…

Q: A budget line is a graph that shows the various combinations of two products that a Multiple Choice…

A: A budget line refers to the all possible combination or all possible bundle of two goods that can be…

Q: Compare the average cost and the output in the long-run equilibrium for a monopolistically…

A: Average total cost refers to the per unit cost of the product-

Q: Consumer surplus Producer surplus Tax revenue Total surplus 22 WITHOUT TAX WITH TAX CHANGE

A: Consumer surplus is the area of triangle below the demand curve and above the price level.Producer…

Q: The seasonally adjusted data below depict the performance of the economy of the United States in…

A: The seasonally adjusted economic performance of the US economy is presented for every quarter.…

Q: In 2018, about percent of the U.S. public debt was held by the U.S. government and Federal Reserve.…

A: The debt owned by the federal government will be determined as the face value of the currently…

Q: If Jordan is open to international trade in limes without any restrictions, it will import Suppose…

A: Import is the difference between the domestic demand and domestic supply. Import = Quantity demanded…

Q: The Beveridge Curve shows that cyclical hiring means that when the unemployment rate is…

A: Beveridge Curve: A graphical representation illustrating the inverse relationship between the…

Q: Question 2 Assume the graphs shown reflect the egg market. The arrow that would best capture the…

A: The supply curve represents the quantity supplied by producers at different price levels. A movement…

Q: The government imposes a $2.50 per-unit tax on the production of good X. As a result the a. quantity…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: Let F be the fixed cost of production, let VC be the variable cost of production, C be the total…

A: Cost curves are crucial tools for understanding and analyzing the cost framework for a firm's output…

Q: Refer to the diagram. If society is currently producing 12 units of bicycles and 2 units of…

A: A graphical representation of the various combinations of goods and services (here, bicycle and…

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A: Demand refers to the willingness of consumer to buy goods and services in the market at given market…

Q: 14. If the inverse demand curve for a good is given by P=100-4Q, the price elasticity of demand is…

A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…

Q: perfectly competitive industry with constant costs initially operates in long-run equilibrium. When…

A: The shape of the long-run supply curve relies on the related cost of production with the expansion…

Q: 1. What are THREE (3) major contributions  that each Norman Manley and Michael Manley Clement Payne…

A: Labor economics is a subfield of economics that focuses on the study of labor markets, labor force…

Q: Consider national parks, which can be thought of as a public good, and in particular consider the…

A: Externalities, in economics, refer to the unintended side effects or consequences of an economic…

Q: Macroeconomics approaches the study O the entire economy. O governmental units. the operation of…

A: Macroeconomics is a part of economics that spotlights on the investigation of the generally or…

Q: 29. Using quarterly data [check instructions for the correct table], the second quarter of 2020…

A: Gross Domestic Product (GDP):GDP is the sum total of goods and services that are produced in the…

Q: Suppose that Mia purchases 2 headphones per month when the price is $40 and 6 headphones per month…

A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…

Q: Economics is the study of how society manages its a. unlimited wants and unlimited resources. b.…

A: In every economy there is a problem of scarcity. Scarcity of resources states that there are…

Q: A diamond mining company has just purchased a new crystal extraction machine that cost $5000, and…

A: Depreciation is the process by which businesses allocate the cost of tangible assets over their…

Q: Starting with a long run steady state equilibrium suppose consumer and investor confidence…

A: Aggregate Demand: Aggregate demand is the total quantity of goods and services demanded in an…

Q: According to data from the UN Food and Agriculture Organization, which of the following nations had…

A: Leading international efforts to end hunger is the Food and Agriculture Organisation (FAO), a…

Q: When the price of candy bars increased from $0.45 to $0.55, the quantity demanded changed from…

A: Price Elasticity of Demand:Price elasticity of demand is a measure of how sensitive the quantity of…

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A: Monopolistic competition: Many firms, differentiated products, some price control.Perfect…

Q: (e) Which of the two options would the producers prefer? Option 1 = (f) Which of the two options…

A: To calculate the consumer surplus, producer surplus, and deadweight loss when the government…

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A: Inferior goods are the special type of goods whose demand decreases with a rise in the income of the…

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A: The Gross domestic product is a country's final value of goods and services in a year. GDP is a…

Q: If this monopolist perfectly price-discriminates, then it will produce _____ units. This will lead…

A: If the monopolist perfectly price discriminates then the monopolist charges price for each unit in…

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.