If the demand for the Ford Mustang increases, we would expect Ford to
A) keep the price of Mustangs constant, regardless of the cost or benefit of a price change.
B) increase the price of Mustangs to keep pace with the increase in demand.
C) increase the price of Mustangs only if the benefit of a price increase outweighs the cost.
D) decrease the price of Mustangs to maintain the increase in demand.
C
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The costs of investment depend on the ________ and the ________.
A. price of new capital goods; real interest rate B. relative price of the firm's output; real interest rate C. marginal product of capital; relative price of the firm's output D. taxes levied on the revenue generated; relative price of the firm's output
The Financial Services Modernization Act
A) effectively repealed the Glass-Steagall Act of 1933. B) increased restrictions on cross-ownership of different types of financial institutions. C) allowed mergers between commercial banks and investment banks, but not between commercial banks and insurance companies. D) All of the above.
For a monopoly producing any output level greater than one, the average revenue curve:
A. is the same as the demand curve. B. lies about the demand curve. C. lies below the demand curve. D. can be negative.
Any event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity
a. True b. False Indicate whether the statement is true or false