What does an upward-sloping supply curve mean?
What will be an ideal response?
As the price increases, the quantity supplied generally increases, causing the line to slope upward. Suppliers are generally willing to invest in more production to increase supply if they are going to be paid more for the product or service. More profit also tends to attract more suppliers of the same product or service.
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The figure above illustrates a linear demand curve. In the price range from $8 to $6, demand is ________ and in the price range $4 to $2, demand is ________
A) elastic; elastic B) elastic; inelastic C) inelastic; elastic D) inelastic; inelastic
Net exports are negative when:
a) a nation's imports exceed its exports. b) the economy's stock of capital goods is declining. c) depreciation exceeds domestic investment. d) a nation's exports exceed its imports.
If the United States' unemployment rate is 5% and the capacity utilization rate is 85-90%, then the economy is at ___________.
Fill in the blank(s) with the appropriate word(s).
At an output at which MC is greater than ATC
A) the ATC curve is downward sloping. B) the ATC curve is upward sloping. C) the AFC curve is upward sloping. D) the AVC curve is downward sloping.