An increase in supply will cause a(n)
a. increase in demand
b. decrease in demand
c. increase in quantity demanded
d. decrease in equilibrium quantity demanded
e. increase in equilibrium price
C
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The law of one price states that identical products should sell for the same price everywhere as long as transactions costs are zero
Indicate whether the statement is true or false
In which of the following situations would you prefer to be the lender?
A) The interest rate is 9 percent and the expected inflation rate is 7 percent. B) The interest rate is 4 percent and the expected inflation rate is 1 percent. C) The interest rate is 13 percent and the expected inflation rate is 15 percent. D) The interest rate is 25 percent and the expected inflation rate is 50 percent.
A nation will neither export nor import a specific product when its:
A. domestic price equals the world price. B. export supply curve lies above its import demand curve. C. export supply curve is upsloping. D. import demand curve is downsloping.
The decision making process for the perfectly competitive firm boils down to
A) deciding what price to charge. B) deciding how much to produce. C) deciding when to change the price. D) deciding for whom to produce.