Refer to the information provided in Table 3.2 below to answer the question(s) that follow.Table 3.2Price per CheeseburgerQuantity Demanded (Cheeseburgers per Month)Quantity Supplied (Cheeseburgers per Month)$51,500 500 61,200 700 7 900 900 8 6001,100 9 3001,300Refer to Table 3.2. If the price per cheeseburger is $5, the price will
A. decrease because there is an excess demand in the market.
B. decrease because there is an excess supply in the market.
C. increase because there is an excess demand in the market.
D. remain constant because the market is in equilibrium.
Answer: C
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Each point on a supply curve represents
A) the highest price buyers will pay for the good. B) the lowest price for which a supplier can profitably sell another unit. C) the lowest price buyers will accept per unit of the good. D) the highest price sellers can get for each unit over time.
A central bank disinflates. Output falls by 3% for one year, 2% the second year, and 1% the third year. If inflation fell by 2 percentage points, what was the sacrifice ratio?
Bob Smith's money wages rose from $32,000 to $48,000, while the CPI rose by 50%. His real wages
A. fell by 50%. B. stayed the same. C. rose by 25%. D. rose by 50%.
For many years, China tightly managed its currency through intervention and capital controls, effectively pegging the yuan to the U.S. dollar (a rate of about 8 yuan per dollar). Which of the exchange rate regimes discussed in the textbook did China have at that time?
A. Purchasing-power-parity exchange rate B. Fixed exchange rate C. Flexible exchange rate D. Partially-flexible exchange rate