What happens as the result of a shortage?
A) There is downward pressure on prices.
B) There is upward pressure on prices.
C) Consumers begin to view the good as an inferior good because they have a hard time finding it.
D) Supply of the good decreases.
B
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Gene's Car Wash is a natural monopoly. To wash 100 cars a week, if Gene is unregulated, he would charge a price of $10. Gene's average total cost for washing 100 cars is $8, his average variable cost is $6, and his marginal cost is $4
If Gene is regulated using a marginal cost pricing rule, the price he is allowed to charge to wash 100 cars is A) $10. B) $8. C) $6. D) $4. E) $400.
Refer to the figure below. Suppose the solid line shows the current demand for coffee. In response to news that next year's coffee harvest will be extremely good due to favorable weather conditions, you should expect:
A. neither a change in quantity demanded nor a shift in demand because it will be a long time before next year's coffee crop is harvested. B. the quantity of coffee demanded to decrease, but no shift in the demand curve. C. the demand curve to shift to D(B) in anticipation of lower future prices. D. the demand curve to shift to D(A) in anticipation of lower future prices.
Which of the following will not cause a shift in the demand curve for DVDs?
A. a change in wealth B. a change in the price of DVDs C. a change in the price of Blu-ray discs D. a change in income
At an annual growth rate of 2 percent, approximately how long does it take for real GDP per capita to increase from $30,000 to $60,000 in a country?:
A) 15 years B) 25 years C) 35 years D) 45 years