When the demand and the supply for bread increases simultaneously, will we able determine their effects on the equilibrium price?
What will be an ideal response?
No. An increase in the demand creates an upward pressure on the equilibrium price. An increase in supply creates a downward pressure on the equilibrium price. The only way to determine the effect of the shift of both curves is to determine which shift, supply of demand, is larger.
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A nation's standard of living, as measured by real GDP per person, increases:
A. only if the share of population employed increases. B. if either average labor productivity and/or the share of population employed increase. C. only if both average labor productivity and the share of population employed increase. D. only if average labor productivity increases.
If the dollar price of the yen is 1.39, the reciprocal exchange rate is 1 yen = $0.39
a. True b. False Indicate whether the statement is true or false
GDP measures
A. the market value of final products produced in the nation during the year.
B. the sum of the market value of final products produced and imported during the year.
C. the market value of intermediate products produced during the year.
D. the sum of the market value of both final and intermediate products produced during the year.
The marginal cost of labor for a perfectly competitive firm is given by:
a. the change in total revenue that results from employing an additional worker. b. the market wage rate. c. its marginal revenue product curve. d. the demand curve for labor. e. the marginal product of labor.