An increase in demand will cause the equilibrium price and quantity to rise, ceteris paribus
Indicate whether the statement is true or false
TRUE
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In the figure above, the demand is elastic in the range of prices between
A) $3.50 and $4.50 per cup B) $2.50 and $3.50 per cup C) $1.00 and $2.00 per cup D) $2.00 and $4.00 per cup E) $1.75 and $2.75 per cup
The monopolistic competitive firm in short-run equilibrium may experience economic profits that are
A) always zero. B) greater than, equal to, or less than zero. C) always positive. D) always negative.
The 95% confidence interval for the dynamic multipliers should be computed by using the estimated coefficient ±
A) 1.96 times the RMSFE. B) 1.96 times the HAC standard errors. C) 1.96, since the HAC errors are standardized. D) 1.64 times the HAC standard errors since the alternative hypothesis is one-sided.
The APS in the United States is generally
A. below .01 B. between .01 and .07. C. between .15 and .25. D. between .7 and .75.