Refer to the above figure. Suppose the demand curve shifts from DA to DB, while the supply curve remains at SA. Which of the following statements is FALSE?
A) There has been an increase in demand.
B) Supply has increased.
C) More consumers in the market might have caused the demand curve to shift.
D) The new equilibrium price is P2, and the new equilibrium quantity is F.
B
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If the market clearing price of computer tablets falls from $400 to $300, and the market clearing output decreases from 5 million to 4 million units,
A) demand decreased and supply remained unchanged. B) supply increased and demand remained unchanged. C) demand increased and supply remained unchanged. D) supply decreased and demand remained unchanged.
If the demand for salad dressing increases when the price of lettuce decreases, the cross-price elasticity of demand between salad dressing and lettuce will be ________ because these two goods are ________.
A. equal to 1; inelastic B. negative; substitutes C. negative; complements D. zero; inferior
In the long run, profits for a monopolistic competitor will be:
A. the same as the profits for a monopolist. B. the same as the profits for a purely competitive firm. C. slightly less than the profits of a monopolist. D. slightly more than the profits of a purely competitive firm.
Common property often results in
A. exclusive rights of ownership. B. more efficient production of goods. C. a negative externality. D. a social benefit.