An increase in demand will have what effect on equilibrium price and quantity?
a. Price will increase; quantity will decrease.
b. Price will decrease; quantity will increase.
c. Both price and quantity will increase.
d. Both price and quantity will decrease.
c
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When there few close substitutes available for a good, demand tends to be
A) relatively elastic. B) perfectly elastic. C) relatively inelastic. D) perfectly inelastic.
If we sum all the firms' MC curves above their ATC curves, we would derive the perfectly competitive
a. long run cost curve b. short run cost curve c. horizontal cost curves d. short-run market supply curve e. long-run market supply curve
In the financial crisis that started in 2006, a significant indicator of the U.S. economic decline was:
A. a significant drop in interest rates. B. a sharp increase in unregulated Ponzi-type security sales. C. rising defaults by subprime mortgage borrowers. D. a large increase in loan default due to unemployment.
In the graph showing the data for the short-run and long-run Phillips curve from 1961–1973, we can see that, in the early 1970s, ______.
a. the inflation rate remained high, but the unemployment rate remained low
b. the unemployment rate remained high, but the inflation rate remained low
c. both the unemployment and inflation rates were relatively low
d. both the unemployment and inflation rates were relatively high