An increase in the price of gasoline will cause the demand curve for tires to shift in which direction?
What will be an ideal response?
To the left, because gasoline and tires are complements
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If the average costs of production decline with increases in output, then the larger a firm is, the lower its per unit costs will be
a. True b. False Indicate whether the statement is true or false
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
What does the Consumer Price Index (CPI) measure?
A. prices of durable goods B. prices of nondurable goods C. the cost of living over time D. the cost of replacing lost items
Which of the following is NOT a service?
A. physical labor purchased by a producer B. things purchased by a consumer that do not have physical characteristics C. tasks performed by someone else D. a diamond used in an engagement ring