Patents Filed with the U.S.Patent Office

question 7

Multiple Choice

Patents filed with the U.S.Patent Office:

• A)are not disclosed to the public.
• B)are the property of the U.S.Government.
• C)frequently suggest other new products.
• D)are only accessible to public limited companies.

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Definitions:

Price Floor

A minimum legal price below which a product cannot be sold; to have an impact, a price floor must be set above the equilibrium price.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Substitution Effect

The economic concept that as prices rise (or incomes decrease), consumers will replace more expensive items with cheaper alternatives, holding utility constant.

Relative Price

Relative price is the price of one good or service compared to another, essentially indicating the trade-off between choosing one over the other.