Given the equations for demand and supply: Qd = 48 ? 4P and Qs = 4P ? 16, respectively, the market is in equilibrium when the quantity bought and sold is:
A. 24.
B. 32.
C. 16.
D. 8.
Answer: C
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If the price elasticity of demand for U.S. automobiles is higher in Europe than it is in the United States, and transport costs are zero, a price-discriminating monopolist would charge
A) the same price for autos in the United States as in Europe. B) a lower price for autos in the United States than in Europe. C) a higher price for autos in the United States than in Europe. D) a less profitable price for autos in the United States than in Europe.
The value-added approach of calculating GDP:
A. is an alternative, and equally valid, way of avoiding the problem of double-counting. B. lets us break down the total value paid and see how much of it was created at each step of the production process. C. is especially useful when thinking about services involved in the resale of existing goods. D. All of these are correct.
Other things the same, an increase in the expected price level shifts
a. short-run aggregate supply right. b. short-run aggregate supply left. c. aggregate-demand right. d. aggregated-demand left.
If the demand curve is horizontal, then demand is:
A. perfectly elastic. B. perfectly inelastic. C. unit elastic. D. elastic.