When drawing a demand curve,
a. demand is measured along the vertical axis, and price is measured along the horizontal axis.
b. quantity demanded is measured along the vertical axis, and price is measured along the horizontal axis.
c. price is measured along the vertical axis, and demand is measured along the horizontal axis.
d. price is measured along the vertical axis, and quantity demanded is measured along the horizontal axis.
d
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A hedge is
A) a financial strategy that reduces the change of suffering losses arising from foreign exchange risk. B) an exchange rate arrangement in which a country pegs the value of its currency to the exchange value. C) the possibility that changes in the value of a nation's currency will result in variations in the market value of assets. D) active management of a floating exchange rate on the part of a country's government.
Which of the following market structures is characterized by a single firm and huge barriers to entry?
a. Monopolistic competition b. Oligopoly c. Monopoly d. Monopsony e. Perfect competition
In the above figure, what would happen to the monopolistically competitive industry in the long run?
A. More producers would exit the market, and the share of the market to this firm would fall, which would cause the demand curve to shift leftward until there is zero economic profit. B. More producers would enter the market, and the share of the market to this firm would fall, which would cause the demand curve to shift leftward until there is negative economic profit. C. More producers would enter the market, and the share of the market to this firm would fall, which would cause the demand curve to shift leftward until there is zero economic profit. D. More producers would enter the market, and the share of the market to this firm would rise, which would cause the demand curve to shift rightward until there is zero economic profit.
The reason the substitution effect works to encourage a consumer to buy less of a product when its price increases is:
A. The real income of the consumer has been increased B. The real income of the consumer has been decreased C. The product is now relatively more expensive than it was before D. Other products are now relatively more expensive than they were before