If a firm?s demand curve is ________, then at the profit-maximizing level of output P = MR = MC.
A. relatively elastic
B. relatively inelastic
C. perfectly inelastic
D. perfectly elastic
Answer: D
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In the above figure, if the price of good A falls from P0 to P1 and the demand for good B increases from D0 to D1, then goods A and B
A) are substitute goods. B) are inferior goods. C) will have a negative cross elasticity of demand. D) are both price elastic but not perfectly price elastic.
Answer the following statement(s) true (T) or false (F)
1. The formula for calculating aggregate demand is the same formula used to calculate GDP using the expenditure approach. 2. The aggregate demand and aggregate supply model is a closed economy model because it includes international trade effects. 3. An inverse relationship exists between the quantity of real GDP demanded and the overall price level. 4. The aggregate demand curve is downward sloping. 5. Purchasers in the economy demand more real output when the price level rises.
Explain what critics see as the problems with social regulation
What will be an ideal response?
Lola wants to make a 6% real return on a loan that she is planning to make, and the expected inflation rate during the period of the loan is 5%. She should charge an interest rate of
A. 1%. B. 6%. C. 11%. D. 16%.