The mechanism of supply and demand is

A. a fundamental tool in both microeconomics and macroeconomics.
B. the only real “law” of economics.
C. a fundamental tool only in microeconomics.
D. a fundamental tool only in macroeconomics.


Answer: A

Economics

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If the demand for jelly increases, and the price of grapes (used to make jelly) rises

A) the equilibrium quantity of jelly falls and the equilibrium price of jelly might rise or fall. B) the equilibrium price of jelly falls and the equilibrium quantity of jelly might rise or fall. C) the equilibrium price of jelly rises and the equilibrium quantity of jelly might rise or fall. D) the equilibrium price of jelly falls and the equilibrium quantity of jelly rises.

Economics

Which of the following is not one of the three sources of technological change?

A) better machinery and equipment B) better means of organizing and managing production C) additional amounts of existing capital D) increases in human capital

Economics

VRIN or VRIO is an example of a

A) five forces model B) resource-base model C) supply and demand model D) dark-side model

Economics

At Tony's Restaurant, the quantity of large pizzas sold is 200 at the unit price $15. Suppose the price elasticity of demand for pizzas by the initial value method is 1.5, and you would like to increase the quantity sold to 250. Then the new price must be:

A. $13. B. $12.50. C. $11.50. D. $11.25.

Economics