A perfectly competitive firm has a horizontal demand curve because it can sell as much as it wants at the market price.
Answer the following statement true (T) or false (F)
True
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When the price of oranges increases,
A) the supply of oranges increases. B) the quantity of oranges demanded increases. C) the quantity of oranges supplied increases. D) the supply of oranges decreases. E) none of the above
Darren loves to go to the movies, and he just learned that he can buy a ticket at a discounted price using his student ID. Darren now attends movies even more often. The change in Darren's behavior would be shown graphically by a:
A. rightward shift in his demand curve. B. leftward shift in his demand curve. C. movement down along his demand curve. D. movement up along his demand curve.
To decrease the money supply, the Fed can
a. buy government bonds or increase the discount rate. b. buy government bonds or decrease the discount rate. c. sell government bonds or increase the discount rate. d. sell government bonds or decrease the discount rate.
According to the above figure, the equilibrium price of DVDs is
A. $20. B. $10. C. $6. D. $14.