Refer to the graph below. At equilibrium, the total maximum amount that consumers would have been willing to pay for the product is represented by the area:
The equilibrium point in the market is where S and D curve intersect.
A. a + b
B. a + b + c
C. a
D. b + c
B. a + b + c
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As the economy enters an expansion so that people's expected future incomes rise, there will be
A) a decrease in the nominal interest rate. B) a leftward shift in the supply of loanable funds curve. C) an increase in the supply of loanable funds. D) a leftward shift in the demand for loanable funds curve. E) None of the above answers is correct.
If demand is inelastic, a drop in price will raise total expenditure.
Answer the following statement true (T) or false (F)
A nation must have an absolute advantage in order to have a comparative advantage in producing a good or service
Indicate whether the statement is true or false
To simplify the analysis of demand shocks in an open, two-economy, short-run model, we assume all of the following EXCEPT:
a. fixed prices and wages. b. levels of government spending and taxes; foreign GDP and foreign rates of interest are given. c. no net unilateral transfers or foreign factor income. d. foreign GDP and foreign rates of interest are constant.