If the market for hula-hoops is characterized by a very inelastic supply curve and a very elastic demand curve, an inward shift in the supply curve would be reflected primarily in the form of:
a. higher prices.
b. higher output.
c. lower prices.
d. lower output.
d
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If an economy produces 4,000 units of output with a price level of $2 and with a velocity of money of 8, we know that the money supply must be:
A. $1,000. B. $8,000. C. $2,000. D. $4,000.
If this firm were a perfect competitor, at what output would it produce in the long run?
A. OP
B. OM
C. OL
D. None of the choices are correct.
Which of the following elements are involved in monopolistic competition?
a. difficult entry, many sellers, identical products; significant brand loyalty b. easy entry, many sellers, product differentiation; significant brand loyalty c. easy entry, few sellers, identical products; little brand loyalty d. difficult entry; few sellers; product differentiation; little brand loyalty
What is one result of the Medicare subsidy?
A. The elderly population in the United States receives a lower quality of medical care than what is provided for the elderly population in other countries. B. Patients may elect to have some treatments that are of low value to them but that are costly to provide. C. The health care industry is more efficient than it otherwise would be. D. The number of physicians in the United States has declined.