If steel manufacturers expected that the price of steel was going to rise in the next six months, this would
a. have no change in the competitive market for steel
b. lead to a decreased demand for steel
c. lead to a decreased supply of steel
d. increase the future demand for automobiles
e. lead to a decrease in the quantity of steel supplied to the market
C
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If demand is inelastic
A) then a 1% increase in price leads to a fall in quantity of greater than 1%. B) then a 1% increase in price leads to a fall in quantity of less than 1%. C) then a 1% increase in price leads to a fall in quantity of 1%. D) then a 1% increase in price leads to a rise in quantity of less than 1%.
An example of an essential facility is
A) the telephone line into your house. B) U.S. Route 66. C) the Golden Gate Bridge. D) your local pizza parlor.
Frictional unemployment is often thought to explain relatively long spells of unemployment
a. True b. False Indicate whether the statement is true or false
To analyze monopolistic competition in trade, we make several assumptions about the market. Which of the following is NOT an assumption of monopolistic competition?
a. many firms in the industry b. easy entry and exit c. constant long-run average cost d. increasing returns to scale, falling long-run average cost