The graph above shows the demand and cost conditions facing a monopolist. What is the maximum profit the monopolist can earn?
A. $30
B. $2,400
C. $1,800
D. $10
E. $800
Answer: C
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If an Engel curve has a positive slope
A) both goods are normal. B) the good on the horizontal axis is normal C) as the price of the good on the horizontal axis increases, more of both goods in consumed. D) as the price of the good on the vertical axis increases, more of the good on the horizontal axis is consumed.
In the above figure, which wage rate will maximize union members' income?
A) W1 B) W2 C) W3 D) W3 - W1
Which of the following will cause the demand curve for gasoline to shift leftward?
a. a decrease in the price of gasoline b. an increase in the price of gasoline c. a leftward shift of the supply of gasoline d. a rightward shift of the supply of cars e. a decrease in the price of bicycles
Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, we would expect that:
A. demand will decrease until quantity demanded equals quantity supplied. B. supply will increase until quantity demanded equals quantity supplied. C. price will increase until quantity demanded equals quantity supplied. D. there will be no change in the price since the market is in equilibrium.