If butter and margarine are substitutes and the price for margarine increases, all of the following will result except
A. the quantity demanded for margarine will fall.
B. the price of butter will rise.
C. the demand for margarine will fall.
D. the demand for butter will rise.
C. the demand for margarine will fall.
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If the nominal interest rate is 8 percent and inflation is 3 percent, approximately what is the real interest rate?
A) 11 percent B) 8 percent C) 5 percent D) 3 percent
The price of gasoline rises by 33 percent to $3.50 a gallon and stays at that price for the next two years. The quantity of gasoline demanded two years from now will be
A) the same as one month after the price hike. B) greater than one month after the price hike. C) less than one month after the price hike. D) the same as it would be if the price hike had never occurred.
Refer to Scenario 4 . What is the maximum number of schools that can be built? The maximum number of prisons?
What will be an ideal response?
In the model of monopolistic competition, if firms have ________ average cost curves, then opening trade will cause ________ firms to ________ the industry
A) different; less efficient; exit B) different; more efficient; enter C) symmetric; less efficient; exit D) symmetric; more efficient; enter E) symmetric; less efficient; enter