When the price of a good rises, the resulting change in relative price causes the consumer to reduce his quantity demanded of that good, even when the consumer is income-compensated so that he remains indifferent about the price change. This observation is known as the
a. Giffen good phenomenon.
b. law of demand.
c. substitution effect.
d. income effect.
c. substitution effect.
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Refer to Figure 15-8. Use the figure above to answer the following questions
a. Identify the curves labeled A and B. Identify the curve which contains both point Y and point Z. Identify the curve which contains both point V and point W. b. What is the profit-maximizing quantity and what price will the monopolist charge? c. What area represents total revenue at the profit-maximizing output level? d. What area represents total cost at the profit-maximizing output level? e. What area represents profit? f. What is the profit per unit (average profit) at the profit-maximizing output level? g. If this industry was organized as a perfectly competitive industry, what would be the profit-maximizing price and quantity? h. What area represents the deadweight loss as a result of a monopoly?
In the former Soviet Union distributing scarce consumer goods was accomplished by
A. higher prices which eliminated some potential consumers. B. making the consumer stand in a long line for hours if not days. C. the government simply printing more money. D. None of the choices are true.
Which of the following is not an oligopolist?
A. The cigarette industry B. Your local water company C. The automobile industry D. OPEC
GDP measures
A. the annual value of final goods and services produced by factors of production located within a national border. B. the value of all goods and services sold in a given country. C. the annual total value of all services produced by factors of production located within a national border. D. the annual value of goods and services produced by factors of production owned by companies headquartered in a given country.