Which of the following will most likely increase short-run aggregate supply?
a. unfavorable weather conditions in the nation's agricultural areas
b. an increase in income tax rates
c. an increase in the expected inflation rate
d. a reduction in resource prices
D
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The buyers pay the entire sales tax levied on a good when demand is perfectly ________ or supply is perfectly ________
A) elastic; inelastic B) elastic; elastic C) inelastic; inelastic D) inelastic; elastic
"Competition is the great regulator." This statement reflects that
What will be an ideal response?
Suppose an industry initially had been perfectly competitive and then became a monopoly. Which of the following would occur?
a. Consumer surplus would decrease. b. Consumer surplus would increase. c. Producer surplus would decrease. d. The deadweight loss would be eliminated.
Refer to Figure 3.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, if the market quantity demanded is 5, the price must be:
A. $3. B. $6. C. $9. D. $12.