Suppose the cost curves in the above figure apply to all firms in the market. Then, if the initial price is P1, in the long run the market
A) demand will increase.
B) demand will decrease.
C) supply will increase.
D) supply will decrease.
D
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What is comparative advantage? What is absolute advantage?
What will be an ideal response?
The price-elasticity coefficients are 2.6, 0.5, 1.4, and 0.18 for four different demand schedules D1, D2, D3, and D4, respectively. A 2 percent increase in price will result in an increase in total revenues in which of the following cases:
A. D1 and D3 B. D1 and D4 C. D2 and D4 D. D1, D2, and D3
Use the figure below to answer the following question.
What is the amount of producer surplus after the government imposes the excise tax on the market?
A. $162 B. $540 C. $486 D. $180
An increase in the demand for our exports
a. increases aggregate demand and income by the amount of the investment multiplier. b. increases imports as well, having no impact on aggregate demand. c. increases aggregate demand and income by less than the amount of the investment multiplier. d. does not impact aggregate demand because this is consumption by foreign countries.