Assume there is a reduction in the shipments of petroleum products due to political tension in the Persian Gulf. Which of the following would not be expected to happen?
A) Oil companies would "ration" their supplies of gasoline by raising price.
B) There would be a shortage of the original equilibrium price.
C) Quantity demanded would decrease.
D) The demand curve would shift to the left.
D
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Refer to Figure 3-1. An increase in the price of the product would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
Over the course of the 20th century, _____
a. federal government expenditures have grown less than state and local expenditures b. federal government expenditures have increased substantially as a percentage of GDP c. federal government expenditures remained fairly constant except during wartime d. federal government expenditures have always been higher than the expenditures of state and local governments.
When a firm charges each customer the maximum price that the customer is willing to pay, the firm
A) engages in a discrete pricing strategy. B) charges the average reservation price. C) engages in second-degree price discrimination. D) engages in first-degree price discrimination.
Under monopolistic competition, a firm’s marginal revenue curve is
a. identical to the average revenue curve. b. above the average revenue curve. c. below the average revenue curve. d. unrelated to the average revenue curve.