Increases in pollution regulations would
A. decrease aggregate demand.
B. decrease short-run aggregate supply.
C. increase aggregate demand.
D. increase short-run aggregate supply.
Answer: B
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Which of the following factors is likely to lead to an increase in the quantity demanded of pens?
A) A fall in the price of paper B) A fall in the incomes of all consumers C) A rise in the incomes of all consumers D) A fall in the price of pens
The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, how many pure Nash equilibria are there?
A) 0 B) 1 C) 2 D) It cannot be determined.
How does this graph indicate inelastic demand?
a. The distance between Q1 and Q2 is the same as the distance between P1 and P2.
b. The distance between Q1 and Q2 is less than the distance between P1 and P2.
c. The distance between Q1 and Q2 is slightly more than the distance between P1 and P2.
d. The distance between Q1 and Q2 is much more than the distance between P1 and P2.
Other things being equal, the monopolist will
A. have lower profits than if the industry were perfectly competitive. B. hire more workers than if the industry were perfectly competitive. C. hire the same number of workers as a perfectly competitive industry would. D. hire fewer workers than if the industry were perfectly competitive.