The demand equation for the Widget Company has been estimated to be:
Q = 20,000 + 10 I - 50P + 20 PC
where Q = monthly number of widgets sold, I = average monthly income, P = price of widgets, and PC = average price of competing goods.
a. If next month's income is forecast to be 2,000, the price of competing goods is forecast to be $20, and the price of widgets will be set at $30, forecast sales.
b. What will sales be if the price is dropped to $20?
a. The forecast for sales is 38,900.
b. The forecast for sales will be 39,400.
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Refer to the table above. Assume that the market for notebooks is in equilibrium. Which of the following is likely to happen if there is an increase in the school enrollment rate, other things remaining the same?
A) The equilibrium price and quantity remain unchanged. B) Both the equilibrium price and quantity of notebooks decrease. C) Both the equilibrium price and quantity of notebooks increase. D) The equilibrium price increases, but the equilibrium quantity of notebooks decreases.
Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for 2016?
A) the value of the house in 2016 B) the value of the house in 2016 minus depreciation C) the value of the services of the real estate agent D) the value of the house in 2003
At a given rate of output, marginal cost equals the slope of the
a. long-run average cost curve b. short-run average total cost curve c. planning curve d. total cost curve e. average variable cost curve
If a price ceiling is imposed, then:
a. the market supply curve will shift to the right. b. the market demand will shift to the left. c. a shortage of product will result. d. the government would be required to buy-up the surplus product. e. the market equilibrium price is below the level the government wishes to achieve.