Assume a national brewing company loses market share to a lower-priced competitor. Assume also that the company's workers go on strike and are able to negotiate a hefty wage increase
As such, we can conclude, with certainty, that the combination of these two changes would cause the equilibrium price and quantity of the company's product to decrease. Indicate whether the statement is true or false
FALSE
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An improvement in technology will cause the
A. economy to move down the production possibility frontier. B. production possibility frontier to shift inward. C. production possibility frontier to shift outward. D. economy to move closer to its production possibility frontier.
Why must the M2 measure of the money supply always be larger than the M1 measure?
What will be an ideal response?
For a previously-legal good, criminalization will cause
A. demand to become less elastic. B. supply to increase. C. supply to become more elastic. D. price to rise, unambiguously.
Suppose when the price of a cookie is $2.50, the quantity demanded is 50, and when the price is $1, the quantity demanded is 200. Using the midpoint method, the price elasticity of demand is:
A. -0.72 B. -7.2 C. -1.40 D. -140