Refer to the scenario above. How will the demand for pens faced by the existing pen manufacturers in Eduland be affected if several firms exit the industry in the long run?
A) The demand curve by existing firms will become perfectly inelastic.
B) The demand curve by existing firms will become perfectly elastic.
C) The demand faced by existing firms will increase.
D) The demand faced by existing firms will decrease.
C
You might also like to view...
If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought ________
A) increases and the price might rise, fall or not change B) increases and the price rises C) doesn't change and the price falls D) doesn't change and the price rises
The analysis in Chapter 15 implies that the housing bubble of the last decade would likely have been avoided if
A) the Fed had pursued a monetary equilibrium policy as opposed to cheap interest rate policies. B) people weren't as greedy as they were during the beginning and middle of the bubble. C) price controls were established to keep home prices from rising as high as they did. D) markets were better regulated.
In the above figure, the economy is at point a on the initial demand for loanable funds curve DLF0. What happens if the real interest rate rises?
A) There is a movement to a point such as b on the demand for loanable funds curve DLF0. B) The demand for loanable funds curve shifts rightward to a curve such as DLF2. C) The demand for loanable funds curve shifts leftward to a curve such as DLF1. D) none of the above
A home theater system and an HD television would be considered an example of:
A) substitute goods. B) giffen goods. C) inferior goods. D) complementary goods.