Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y2.
C. P3 and Y1.
D. P2 and Y3.
Answer: D
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A subsidy to buyers has been placed on the market in the graph shown. What is the amount of the subsidy per unit of this good?
A. $22
B. $16
C. $10
D. $6
If a product has an elastic demand, it means that:
a. consumers are relatively sensitive to a change in the price of the product. b. consumers are relatively insensitive to a change in the quantity demanded of the product. c. consumers are relatively insensitive to a change in the price of the product. d. producers are relatively insensitive to a change in the price of the product. e. producers are relatively sensitive to a change in the quantity demanded of the product.
The Sherman Antitrust Act prohibits price fixing by competitors, monopolization of a market, and attempts to monopolize a market
a. True b. False
Use the following figure to answer the next question.
If box E represents government, box C businesses, box D the resource market, and box B the product market, then government purchases of computers, office supplies, and military hardware would be illustrated by arrows
A. 7 and 8. B. 5 and 6. C. 9 and 10. D. 10 and 11.