Suppose demand is perfectly inelastic, and the supply of the good in question decreases. As a result,
a. the equilibrium quantity decreases, and the equilibrium price is unchanged.
b. the equilibrium price increases, and the equilibrium quantity is unchanged.
c. the equilibrium quantity and the equilibrium price both are unchanged.
d. buyers' total expenditure on the good is unchanged.
b
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The additional revenue a firm obtains when it hires an additional worker (holding other inputs constant) is the
A) marginal revenue product (MRP) of labor. B) total factor cost (TFC) per worker. C) general rule for hiring. D) marginal physical product (MPP) of labor.
Which of the following policies, in effect, destroyed China's central governmental institutions
a. the great leap b. the cultural revolution c. the Deng reform d. the land reform e. all of the above
The commercial paper market was an important ingredient for the Great Recession because:
a. It is the market on which mortgages are financed, and, due to the Great Recession, this market dried up. b. It is the market on which many companies finance their daily working capital needs and, due to the Great Recession, this market dried up. c. The commercial paper market was the only financing source open to companies during the great recession. d. All of the above.
Consider a Stackelberg duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi = 2. Based on this information, the Stackelberg leader's marginal revenue function is:
A. MR(QL) = 50 ? 2QL + c1/2. B. MR(QL) = 50 ? 2QL + c2/2. C. MR(QF) = 100 ? QF + c2/2. D. MR(QF) = 100 ? 2QF + c1/2.