A craze for apples in Riverdale increases the quantity demanded at every price by five bushels. Between any two prices, the new demand curve will be ____ the old demand curve.
A. more elastic than
B. less elastic than
C. equal in elasticity to
D. More information is needed to predict the relationship.
Answer: B
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Using the liquidity preference framework, show what happens to interest rates during a business cycle recession
What will be an ideal response?
Refer to the following graph.
The marginal product and average product curves:
A. are A and B, respectively. B. could be either A or B. C. are B and A, respectively. D. are not drawn properly.
Suppose you are a manager of a factory. You purchase five (5) new machines at one million dollars each. If you can resell two of the machines for $500,000 and three of the machines for $200,000, what are the sunk costs of purchasing the machines?
A. $1.6 million B. $3.4 million C. $5 million D. $500,000
When a firm sells its good abroad below the cost of producing the good the firm is
A) using the concept of comparative advantage. B) dumping. C) taking advantage of the infant industry argument. D) taking advantage of absolute advantage.