The substitution effect causes a consumer to buy less of a product when the price increases because the
What will be an ideal response?
product is now more expensive compared to similar products.
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A change in the price level produces a ________ the aggregate demand curve. i. shift in ii. change in the slope of iii. movement along
A) i only B) ii only C) iii only D) i and iii E) i and ii
Which of the following is characteristics is common to both monopoly and monopolistic competition?
A) Ease of entry into the industry. B) Firms are price setters. C) A relatively large number of sellers. D) Long-run economic profit equals 0.
It is ___________ for a country to have a very high level of trade while also having a near-balance between the value of exports and imports.
a. possible b. impossible c. likely d. unlikely
The labor market in professional baseball is an example of
A) a bilateral monopoly. B) a monopsonistic labor market. C) a monopolistic labor market. D) a perfectly competitive labor market.