Figure 10-9
Figure 10-9 shows supply and demand conditions in a perfectly competitive industry and for a firm in that industry. Assume the industry initially has supply curve S1 and demand curve D1. If demand shifts to D2, then in the short run price will
a.
rise to A.
b.
rise to some level between A and B.
c.
remain at B.
d.
fall to C.
a
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Refer to the table above. If a trade deficit of $23,000 occurs in the next year, ________, all other variables remaining unchanged
A) gross domestic product will increase to $531,000 B) gross domestic product will fall to $325,000 C) gross domestic product will increase by $2,000 D) gross domestic product will fall by $2,000
Which of the following statements is correct?
a. The "law" of diminishing marginal utility implies that demand curves slope upward and to the right. b. If the price of a good falls, the utility-maximizing consumer will assure that marginal utility rises. c. If the price of a good falls, the consumer will purchase more of the good in order to maximize total utility. d. MU and demand have different underlying consumer behavior assumptions.
The presence of discouraged workers causes the measured unemployment rate to be:
What will be an ideal response?
A firm has a total cost function of C(Q) = 75 + 25Q1/2. The firm experiences:
A. diseconomies of scale. B. economies of scale. C. constant returns to scale. D. All of the statements associated with this question are correct.