When demand and supply both decrease, equilibrium price will _________ and equilibrium quantity will _________.
A. increase; decrease
B. decrease; decrease
C. remain the same; decrease
D. Any of these answers are possible
D. Any of these answers are possible
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Refer to Figure 16-6. Sensei's friend, Marcel, suggests that he charge a one-time membership fee to use the martial arts school, in addition to a per-class charge
Suppose Sensei charges the monopoly price for each class and also imposes a one-time membership fee. What is the maximum amount of revenue from the membership fee he can collect from all his customers? A) an amount equal to the area A + B B) an amount equal to the area H + G C) an amount equal to the area E + F D) an amount equal to the area A + C + H
In a free-market system, producers will react to an increase in demand when
A. the price goes up. B. the government announces the increased demand. C. their costs increase. D. the free press publishes news of the increased demand.
When AFC is falling, ATC
A. must be rising. B. must be falling. C. may be falling or rising. D. will remain constant.
________ shifts the Fed rule to the right.
A. A decrease in government spending B. A decrease in the price level C. An increase in government spending D. An increase in the Z factors