Firms that face downward-sloping demand curves for their output in the product market are called
A) price takers. B) monopolists. C) price dictators. D) price makers.
D
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The fundamental goal of economics is to
A. provide all people with five yachts and two automobiles. B. redistribute income and eliminate poverty. C. reduce unemployment so that welfare payments are not necessary. D. learn to handle the scarcity of virtually all resources.
The basic difference between mixed and pure bundling is that
A) in pure bundling, buyers can only buy a collection of goods, while with mixed bundling, they can buy the collection or the components of the collection separately. B) in pure bundling, buyers must buy a collection of goods, while in mixed bundling, buyers pay different prices for the same collection. C) price elasticities are generally elastic when pure bundling is used while unitary elasticity is prevalent when mixed bundling is used. D) the costs of production vary between the two types of bundling.
Rubin's Classic Book Shop has been advised that raising prices would lead to higher revenues because his product demand is elastic. The consultant giving this advice should be fired for bad information
Indicate whether the statement is true or false
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.