Suppose that a subsidy is provided for the consumption of good abc, and the subsidy is different for different units of good abc (e. g., $10 subsidy on the first unit of good abc and $7 on the second unit of good abc, the demand curve with such a subsidy will lie to the of the demand curve without a subsidy, parallel to the demand curve without any subsidy.

Lohn corporation is expected to pay the following dividends over the next four years: $18, $14, $13, and $8.50. afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. if the required return on the stock is 14 percent, what is the current share price?

Agood for which demand increases as income rises is and a good for which demand increases as income falls is

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars