Suppose that the buyers of bread higher incomes and bread is an inferior good. In the market for bread, this will cause the ________ and the equilibrium price to ________.
A. supply of bread to decrease; increase
B. supply of bread to increase; decrease
C. demand for bread to decrease; decrease
D. demand for bread to increase; increase
Answer: C
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The difference between individual and aggregate demand is
a. Individual demand is the total demand of all the individuals in a market b. In the aggregate demand, each point represents a single consumer's different values for a single unit of the good c. In the aggregate demand, each point represents a consumer group's value of the good d. All of the above
According to the Lucas supply function, if the expected price level is smaller than the actual price level
A. real output increases. B. real output must be at a minimum. C. real output must be at a maximum. D. real output decreases.
DHL, a successful European company, is attempting to overcome various legal problems in order to enter the U.S. market of overnight package delivery. Its two major competitors would be FedEx and UPS. As DHL looks to set up a U.S. subsidiary, it wishes to benchmark its organizational architecture. What should it do?
What will be an ideal response?
The potential problem with competitive pricing regulation of a natural monopoly is that ________.
A. P < MR B. P < ATC C. P < AVC D. P < MC