The horizontal dotted line is
A. a price ceiling.
B. a price floor.
C. the price at which quantity supplied equals quantity demanded.
D. the equilibrium price for this graph.
A. a price ceiling.
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If the quantity of fishing poles demanded is represented by the demand equation QD = 60 - P, then to solve for the price of fishing poles, the equation would be rewritten as
A) P = -60 + QD. B) P = QD + 60. C) P = 0.6QD + 10. D) P = 60 - QD.
A firm's demand for labor curve is also called its
A) marginal revenue product of labor curve. B) marginal benefit of labor curve. C) marginal factor cost of labor curve. D) marginal valuation curve.
When aggregate demand meets aggregate supply in the vertical portion of the aggregate supply curve,
A) an increase in demand will cause prices to rise but no change in output. B) an increase in demand will cause output to rise but no change in prices. C) an increase in demand will cause prices to fall but no change in output. D) an increase in demand will cause output to fall but no change in prices.
Illustrate and explain the effects of tax reduction and simplification using the dynamic aggregate demand and supply model. To simplify the analysis, assume that aggregate demand is not affected by the tax cut
What will be an ideal response?