The demand for microwaves in a certain country is given by: D = 8,000 -30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. Suppose the economy is closed. The equilibrium price of a microwave is ________ and equilibrium quantity is ________.
A. $50; 8,000
B. $125; 4,000
C. $75; 6,000
D. $100; 5,000
Answer: D
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Differentiate between positive and negative incentives
Which retail operation would have the lowest costs per book sold?
a. a small independent bookstore b. a large retail bookstore chain c. an Internet seller of books d. All would have the same costs.
When economists speak of changes in GDP measured in constant dollars, they mean that
What will be an ideal response?
Figure 14-1
In , an unanticipated shift to a more expansionary monetary policy will shift
a.
AD to the right and temporarily increase real GDP.
b.
AD to the left and temporarily reduce real GDP.
c.
AD to the right and SRAS to the left and lead to higher prices (inflation).
d.
both AD and SRAS to the right and lead to an increase in real GDP.