When a demand curve shifts to the right
A. demand has increased, so supply also shifts to the right, and the equilibrium price increases.
B. demand has decreased, so equilibrium price decreases, and equilibrium quantity decreases.
C. demand has increased, so equilibrium price increases, and equilibrium quantity increases.
D. demand has decreased, so supply also shifts to the right, and the equilibrium price decreases.
Answer: C
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The Save More Tomorrow (SMarT) program is an example of a:
A. strong commitment device that was successful. B. weak commitment device that was unsuccessful. C. strong commitment device that was unsuccessful. D. weak commitment device that was successful.
During the 2016 Summer Olympics in the city of Rio, some Rio residents rented rooms to visitors. This behavior
A) helped reduce the shortage of hotel rooms caused by the high demand during the Olympics. B) reduced the demand for tickets to the Olympics since many local residents left town while they rented out space in their homes. C) helped raise the prices that visitors paid for hotel rooms in Rio. D) raised the demand for hotel rooms in Rio and should have been prevented by the city of Rio.
There are a few firms selling differentiated products in a monopolistically competitive industry.
Answer the following statement true (T) or false (F)
If a firm has implicit costs as well as explicit costs,
A) accounting profit will be zero. B) net income will always be greater than accounting profit. C) net income will always be less than accounting profit. D) economic profit will be less than accounting profit.