Assume the graph shown represents the market for bottles of wine and was originally in equilibrium with D and S. Something changes and demand shifts to D2. Which of the following is true?
A. Equilibrium price increased by $5.
B. Equilibrium quantity increased by 20.
C. Equilibrium price increased by $15.
D. Equilibrium quantity increased by 30.
AACSB: Analytical Thinking
A. Equilibrium price increased by $5.
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Why are transfer payments not included in GDP?
A) The amount is too low to have any effect. B) Unemployment varies and can't be tracked. C) Money companies receive from the government isn't reported. D) They do not represent payments to those who contributed resources to currently produced goods or services.
A bracelet making company has three employees, and together they produce 10 bracelets an hour. When a fourth worker joins them, the output for the company is now 11 bracelets an hour. Which of the following is true?
A. Diminishing marginal product started with the fourth worker. B. Average product has increased. C. Total product is increasing. D. None of these is true.
What famous economist said that the market economy seemed to be controlled by an invisible hand?
a. Alfred Marshall. b. Adam Smith. c. Karl Marx. d. Robert L. Heilbroner.
If the elasticity of demand for the latest American Idol album is 1.4, this means
A. a 1 percent increase in the price leads to a 14 percent decrease in quantity demanded. B. few substitutes for the American Idol album exist. C. a 5 percent increase in the price leads to a 7 percent decrease in quantity demanded. D. a 10 percent decrease in the price leads to a 140 percent increase in quantity demanded.