The following two individual demand curves represent the entire market for a commodity. What is the market demand curve for the commodity? Show the market demand in equation and graphical form. (a) P = 60 - 10Q (b) P = 60 - 15Q
What will be an ideal response?
P = 60 - 6Q and demand intercepts are P = 60 and Q = 10.
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The U.S. exchange rate rises. As a result, there is a
A) movement along the U.S. aggregate demand curve but the curve does not shift. B) rightward shift in the U.S. aggregate demand curve. C) leftward shift in the U.S. aggregate demand curve. D) rightward shift in the long-run U.S. aggregate supply curve.
The demand curve facing Company ABC is perfectly elastic. What is its marginal revenue?
A. Equal to the average revenue B. Less than the price C. Higher than the price D. Higher than the average revenue
The large-number-of-sellers condition of perfect competition is met whenÂ
A. there are more sellers than buyers in the market. B. there are more than 50 firms in the industry. C. there are more than 100 firms in the industry. D. each firm is so small relative to the total market that no single firm can influence the market price.
As a result of technology, many small businesses today:
A. no longer need banks. B. are located closer to their bank. C. have more face-to-face interactions with their banker. D. are located further from their bank.