What will happen to the market supply curve of gadgets if a new gadget producer enters the market?

It will not change.

It will become more elastic.

There is insufficient data to determine.

It will shift right at every price with more output supplied.

It will shift left at every price with less output supplied.

Besides raising revenue, what is the most likely goal of a government that enacts a per-unit tax?

To increase market competition

To correct for a positive externality

To correct for a negative externality

To encourage production of private goods

To increase profit and encourage production

Which of the following policies would be most likely to have the effect of increasing income inequality?

Increasing the interest rate on bank loans

Switching from a regressive tax system to a progressive tax system

Lowering taxes on income from interest earned on investments

Increasing the nation's per capita income

Taxing inheritance and using the revenue to provide college scholarships

Tan Limited sells its product in a market that is characterized by a few sellers, selling differentiated products. Each seller influences the behavior of the other sellers. What type of market does Tan operate in?

Perfectly competitive market

Monopoly market

Oligopoly market

Monopsony market

Monopolistic competition

Elasticity can disregard specific units of measurement by doing what?

Converting everything to dollar values

Using only curves rather than demand schedules

Averaging changes in quantities

Using the percentage change in quantity and price

Applying the midpoint formula so the direction of calculation does not matter