What would most likely cause the price to move from P1 to P2?
a. an increase in demand
b. an increase in supply
c. an increase in quantity
d. an increase in equilibrium
a. an increase in demand
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In perfect competition, the marginal revenue of an individual firm
A) is zero. B) is positive but less than the price of the product. C) equals the price of the product. D) exceeds the price of the product.
Do firms in perfect competition advertise their products? Why or why not?
What will be an ideal response?
Refer to Figure 14.3. Suppose the economy is initially at long-run equilibrium and the Fed increases the target inflation rate, and to hit this rate, it must reduce the real interest rate. This is best represented by an initial movement from
A) point A to point B. B) point A to point D. C) point A to point C. D) point B to point C.
The ceiling on the interest rate, setting a maximum rate that banks and S&Ls were allowed to pay depositors, was prescribed by
a. the FDIC mandate b. Regulation Q c. the Federal Reserve Board of Governors commission d. Continental Bank's charter e. the constitution of the First National Bank