If demand increases, the increase in price will be smaller if demand and supply are highly inelastic.
Answer the following statement true (T) or false (F)
False
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Suppose the nation of Arcadia produces only two goods, teapots and surfboards. If Arcadia produces only teapots, it can make 80 per day. If Arcadia produces only surfboards, it can make 30 per day
What is the opportunity cost of 1 teapot in Arcadia? A) 3/8 of a surfboard B) 8/3 surfboards C) 30 surfboards D) 80 surfboards
As interest rates rise, the opportunity cost of holding money ________ and the demand for money ________
A) rises; rises B) rises; falls C) falls; rises D) falls; falls
Assume the market in the graph shown was originally at an equilibrium with demand D and supply S. The original equilibrium price and quantity were, respectively:
A. $5 and 30. B. $10 and 20. C. $5 and 20. D. $20 and 10.
Branding allows monopolistically competitive firms to:
a. achieve allocative efficiency b. increase demand and profits. c. produce at the lowest marginal cost. d. achieve productive efficiency.