Which of the following would cause both the equilibrium price and equilibrium quantity of cookies to decrease?
a. a rise in the price of milk (a complement)
b. a rise in consumer incomes
c. a rise in the price of cookie dough
d. a drop in the price of cookie dough
e. a rise in the price of crackers (a substitute)
A
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In the short run, which of the following actions lower the interest rate?
A) a decrease in the demand for money B) an increase in the demand for money C) a decrease in the quantity of money D) a decrease in bond prices
The average output produced per worker is one way of measuring
A) inflation. B) the interest rate. C) employment. D) productivity.
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
In the long run, the equilibrium price will be ________ per gallon, and each firm's profit-maximizing quantity will be ________ gallons per week.
A. $20; 400 B. $15; 300 C. $20; 4,000 D. $15; 6,000
If an individual's total utility from consuming two goods increases, then there must be
A) a downward rotation of the individual's indifference curve. B) an inward rotation of the individual's indifference curve. C) an outward shift of the individual's indifference curve. D) an inward shift of the individual's indifference curve.