Adverse supply shocks can cause a recession with increasing price level
Indicate whether the statement is true or false
TRUE
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What is the effect on the equilibrium price and equilibrium quantity of orange juice if the price of apple juice decreases and the wage rate paid to orange grove workers increases?? The equilibrium price of orange juice ?______ and the equilibrium quantity? ______.
Fill in the blank(s) with the appropriate word(s).
How does a single-price monopoly determine the price it will charge its customers?
What will be an ideal response?
Suppose that the demand for electricity has been found to be price inelastic. The most likely explanation for this finding is that:
A. few substitutes for electricity exist. B. electricity is sold in a monopoly market. C. electricity is a luxury good. D. the fraction of income spent on electricity is large.
Consider a world with two countries and two goods. Under which of the following conditions does comparative advantage NOT exist?
A. One country has more productive resources or inputs than another country. B. The opportunity cost of producing each good is the same in each country. C. One country has an absolute advantage in producing one good while the other country has an absolute advantage in producing the other good. D. One country can produce both goods more cheaply than the other country.