If a product is manufactured under conditions of constant cost, an increase in the demand for the product will increase
a. both equilibrium quantity and equilibrium price in the long run.
b. equilibrium price, but equilibrium quantity will be unchanged in the long run.
c. equilibrium price but reduce equilibrium quantity in the long run.
d. equilibrium quantity, but equilibrium price will be unchanged in the long run.
D
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Z is a normal good. The equilibrium price and equilibrium quantity of Z in the year 2011 was $25 and 60 units, respectively. In 2014, the equilibrium price of Z had decreased to $15 and the equilibrium quantity had also decreased to 50 units
Other things remaining the same, which of the following could explain this change? A) Shift of the demand curve for Z to the left B) Shift of the demand curve for Z to the right C) Shift of the supply curve of Z to the right D) Shift of the supply curve of Z to the left
Refer to Figure 9-3. What is the reduction in value of consumer surplus after the imposition of the quota?
A) $8 million B) $26.25 million C) $27.75 million D) $30 million
If your bank faces a 20 percent required reserve ratio and receives a cash deposit of $4,000 into a checkable deposit account, the maximum total amount of money possible after the banking system makes all loans is:
a. $800. b. $3,200. c. $4,000. d. $16,000. e. $20,000.
Figure 11-6
The profit-maximizing monopolist in Figure 11-6 will produce ____ units of output.
A. Q1 B. Q2 C. Q3 D. Q4