Refer to the accompanying figure, which shows the market for cups of coffee. At the original market equilibrium:
A. 60 cups are sold per hour at a price of $1.50 each.
B. 50 cups are sold per hour at a price of $2.50 each.
C. 50 cups are sold per hour at a price of $1.00 each.
D. 40 cups are sold per hour at a price of $2.00 each.
Answer: D
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If in the economy, business saving equals $300 billion, household saving equals $10 billion and government saving equals -$200 billion, what is the value of national saving?
A. $210 billion B. $310 billion C. $110 billion D. $10 billion
The marginal product of labor is the
a. additional output produced when one more worker is hired b. amount of output associated with labor inputs c. maximum amount of output produced by a given set of inputs d. maximum profit "produced" by selling a firm's output e. additional cost associated with an additional unit of labor
If a firm's marginal cost is greater than its average total cost, its average total cost is
A. increasing. B. decreasing. C. not U-shaped. D. constant.
Within the Keynesian aggregate expenditures model, if the economy is below equilibrium, then there will be:
A. an increase the demand for goods and services. B. an increase in real GDP. C. lower interest rates, which will stimulate aggregate demand and keep the economy at full employment. D. a lower price level, which will quickly guide the economy to full-employment equilibrium.