Along the aggregate supply curve, the quantity of real GDP supplied increases when the price level rises because
A) the real wage rate rises.
B) the demand for the goods and services increases.
C) the real wage rate falls.
D) the real wage rate and profits both fall.
E) profits decrease.
C
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Which of the following would result from an increase in the supply of a good?
A. Both equilibrium price and quantity would rise. B. Both equilibrium price and quantity would fall. C. Equilibrium price would rise, and equilibrium quantity would fall. D. Equilibrium quantity would rise, and equilibrium price would fall.
Suppose there is a public good that has market supply characterized by the equation X = (P/3) - (32/3). Suppose further that market demand for this good can be characterized by the equation X = 25 - P. Find the equilibrium quantity of the public good that will be supplied.
What will be an ideal response?
Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product.
Suppose Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Quick Buck cheats by reducing its price to $1 while Pushy Sales continues to comply with the collusive agreement, then Quick Buck's economic profit will be ________.
A. $4,000 B. $3,000 C. $2,000 D. $6,000
The services of farmers are an example of:
A. capital. B. a natural resource. C. labor. D. entrepreneurship.