Refer to the accompanying figure. An increase in supply is represented by a shift from:
A. curve C to curve D.
B. curve B to curve A.
C. curve A to curve B.
D. curve C to curve B.
Answer: C
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Firm A produces and sells in a market that is characterized by highly differentiated consumer goods. Firm B produces and sells industrial products. Firm C produces and sells an agricultural commodity. Which firm is likely to spend the greatest portion of its total revenue on advertising?
a. firm A b. firm B c. firm C d. There is no reason to believe that any one of the three firms would spend a greater portion of its total revenue on advertising than the other two firms.
Would each of the following groups be happy or unhappy if the Mexican peso appreciates against the U.S. dollar? Answer the question for each of the following: (a) The U.S. pension funds holding Mexican government bonds (b) U.S. tourists planning a trip to Mexico (c) Mexican exporting manufacturers (d) A Mexican firm trying to buy properties overseas
What will be an ideal response?
The pre-1914 gold standard imposed pressure to adjust mostly on countries that experienced
A. official settlements balance deficits. B. seasonal fluctuations in export sales. C. persistent increases in the countries' holdings of official international reserves. D. trade surpluses.
BrightLight Ltd. estimates the demand curve for its table lamps to be Q = 1,000 - 4P. That is, P = 250- .25Q. Which of the following is NOT true?
A. The elasticity of demand for BrightLight's table lamps is equal to 7.5 when their price is $125. B. The maximum total revenue BrightLight can obtain is $62,500. C. The marginal revenue curve for BrightLight's table lamps is given by MR = 250 - ½P. D. BrightLight maximizes its total revenues when selling 500 lamps.