Refer to the information provided in Figure 9.5 below to answer the question that follows. 
Figure 9.5Refer to Figure 9.5. From the diagram, existing firms in this industry make ________ economic profits, and as long as this continues, ________.
A. positive; the industry supply curve will shift to the left
B. zero; new firms will not enter it and existing firms will not leave it either
C. negative; new firms will not enter it and existing firms will leave it
D. positive; new firms will enter the industry and existing firms will not leave it
Answer: D
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
How is it possible for consumption expenditure to be positive even when disposable income is zero?
What will be an ideal response?
Goods X and Y are complementary goods. An increase in the price of good X has occurred. In the market for good Y this will lead to
A) an increase in price and a decrease in quantity. B) an increase in price and an increase in quantity. C) a decrease in price and a decrease in quantity. D) a decrease in price and an increase in quantity.
The English rule of costs
a. applies only in England. b. is the standard practice worldwide, except in the United States. c. is a practice where the loser of a lawsuit pays all attorneys' fees and court costs. d. results in more lawsuits filed. a. both b and c are true.