Refer to Figure 3-2. An increase in the number of firms in the market would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
C
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Assume the demand curve for shampoo is downward sloping. If the price of shampoo falls from $1.50 to $1.25 per dozen,
a. the demand for shampoo will fall. b. the demand for shampoo will rise. c. a larger quantity of shampoo will be demanded. d. a smaller quantity of shampoo will be demanded.
If price and quantity are not at their equilibrium positions, then
A. government must intervene. B. a move to another position will help everyone. C. it is possible to reallocate so that some people are better off without harming others. D. a move to another position will not hurt anyone.
In Year 1, the actual budget deficit was $200 billion and the cyclically-adjusted deficit was $150 billion. In Year 2, the actual budget deficit was $225 billion and the cyclically-adjusted deficit was $175 billion. It can be concluded that fiscal policy from Year 1 to Year 2 became more:
A. Proportional B. Progressive C. Contractionary D. Expansionary
In monopolistic competition, if a firm makes modest changes in its price or output, it will influence the market shares of other firms in the market.
Answer the following statement true (T) or false (F)