In this graph, what has changed from equilibrium level E1 to equilibrium point E3?
a. Output has increased.
b. Output has decreased.
c. Price level has increased.
d. Price level has decreased.
c. Price level has increased.
You might also like to view...
The quantity that sellers wish to sell tends to ________ as price increases, and so the supply curve is ________ sloping.
A. increase; upward B. decrease; downward C. decrease; upward D. increase; downward
In the federal funds market, _____
a. banks make loans to the Fed b. banks make short-term loans to other banks c. banks make long-term loans to other banks d. the Fed makes short-term loans to private borrowers e. the Fed makes long-term loans to commercial banks
If every household in Trinidad received an international grant of $50,000 to spend on household appliances, its
a. aggregate supply curve would shift to the right b. aggregate supply curve would shift to the left c. price level would rise causing a movement up along its aggregate demand curve d. aggregate demand curve would shift to the left e. aggregate demand curve would shift to the right
The feature that distinguishes monopolistic competition from perfect competition is that monopolistically competitive firms are
A. able to block the entry of other firms. B. large relative to the market. C. able to differentiate their products. D. price takers.