There will be short-run pressure on the price to fall whenever
A. P=ATC.
B. P
D. P
Answer: C
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We would expect the cross-price elasticity of demand between Pepsi and Coke to be
A. negative, indicating substitute goods. B. positive, indicating substitute goods. C. positive, indicating secondary goods. D. positive, indicating general goods.
In the United States, the percentage of part-time workers who are part time for noneconomic reasons
A) has fallen by almost one half since 1980. B) does not fluctuate much with the business cycle. C) rises during an expansionary period and falls during a recessionary period. D) has averaged about 33 percent of all workers. E) has increased in most years since 1980.
Suppose the economy is at a short-run equilibrium GDP that lies below potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?
A) Output will decrease. B) Short-run aggregate supply will shift to the right. C) Unemployment will rise. D) Prices will increase.
Which of the following can make the unemployment rate fall?
A. A decrease in the number of people who are looking for work. B. An increase in the number of people with jobs. C. A decrease in the number of people who are looking for work and an increase in the number of people with jobs. D. An increase in the number of people neither working nor looking for work.