Using the above figure, suppose that roses are a normal good. If there is an increase in income
A) the equilibrium price will rise above $25 per dozen roses.
B) the equilibrium quantity will decrease below 10 dozen roses.
C) we cannot predict what will happen to the equilibrium price.
D) we cannot predict what will happen to the equilibrium quantity.
A
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In the above figure, if five million CDs per month are produced and consumed, that is
A) better than producing and consuming four million CDs because more is always better than less. B) more than the efficient quantity because the marginal social benefit exceeds the marginal social cost. C) more than the efficient quantity because the marginal social cost exceeds the marginal social benefit. D) less than the efficient quantity because the opportunity cost exceeds the marginal social benefit.
If the Fed purchases securities worth $10 million from a commercial bank, the banking system's balance sheet will show
A) an increase in securities held of $10 million and an increase in bank reserves of $10 million. B) an increase in securities held of $10 million and a decrease in bank reserves of $10 million. C) a decrease in securities held of $10 million and an increase in bank reserves of $10 million. D) a decrease in securities held of $10 million and a decrease in bank reserves of $10 million.
Suppose Happy Cows has a marginal cost equal to 0.5Q and Free Cows has a marginal cost equal to 2Q.
A) All else equal, neither Free Cows nor Happy Cows can benefit from an accurate forecast. B) All else equal, an accurate forecast is more valuable to Free Cows than Happy Cows. C) All else equal, an accurate forecast has the same value to both Free Cows and Happy Cows. D) All else equal, an accurate forecast is more valuable to Happy Cows than Free Cows.
If a firm collects $80 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $120 in revenue when it sells 6 units, then one can infer the firm is a(n):
A. perfect competitor. B. oligopolist. C. monopolist. D. monopolistic competitor.