If Y = A × N × (75 + K/N), where K = 1000, N = 20, and A = 10, what happens if K doubles and N doubles?
A) Y is unchanged.
B) Y increases by 50%.
C) Y doubles.
D) Y quadruples.
C
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The existence of unemployment can be illustrated on a production possibilities curve by a(n)
A. point below or inside the surface of the curve. B. inward shift of the curve. C. movement along the curve. D. outward shift of the curve.
When people's incomes increase, the demand for a good increases. The good is called
A) an inferior good. B) a complement. C) a substitute. D) a normal good.
What role can the government play in correcting for externalities?
What will be an ideal response?
We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will increase when
A) supply increases and demand decreases. B) supply and demand for a product simultaneously decrease. C) supply and demand for a product simultaneously increase. D) supply decreases and demand increases.