The supply curve illustrates that firms:
A. increase the quantity supplied of a good when its price rises.
B. decrease the quantity supplied of a good when input prices rise.
C. decrease the supply of a good when its price rises.
D. increase the supply of a good when its price rises.
Answer: A
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Forward and spot exchange rates
A) are necessarily equal. B) do not move closely together. C) are always such that the forward exchange rate is higher. D) move closely together and are equal on the value date. E) are unrelated to the value date.
Assume that when the price of good Z is increased from $5 to $6, the total revenue earned increases from $600 to $690. Based on this information, we can conclude that over this range, demand for Z is:
A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic.
The Grangers would most likely support which policy?
a. Price controls on grain operators b. Price deflation c. A strong commitment to backing currency only with gold d. Federal government aid to railroads
According to the kinked demand curve model, an oligopolist may face
a. more elastic demand than a monopolistic competitor. b. less elastic demand than a monopolistic competitor. c. more elastic demand if she raises her price than if she lowers her price. d. less elastic demand if she raises her price than if she lowers her price.