Refer to Figure 12-12. Consider a typical firm in a perfectly competitive industry that makes short-run profits. Which of the diagrams in the figure shows the effect on the industry as it transitions to a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D
B
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Historical evidence seems to indicate that
A) budget and trade deficits generally move in the same direction. B) budget and trade deficits generally move in the opposite direction. C) trade and budget deficits decrease when the president is a Republican, and increase when the president is a Democrat. D) there is no consistent relationship between trade and budget deficits.
Summarize the relationship between elasticity, price changes, and changes in total revenue
What will be an ideal response?
How are the effects of the financial crisis shown using the Phillips curve diagram?
Suppose a cup of tea costs $0.60 and a scone costs $1.20. If Edith spends all of her income on these two goods, and at her current level of consumption, she receives a marginal utility of 6 utils from the last cup of tea she buys and a marginal utility of 24 utils from the last scone she buys, then Edith should:
A. buy more tea and fewer scones. B. not change her consumption of tea and scones. C. buy more tea and more scones. D. buy less tea and more scones.