When the demand and the supply for bread increases simultaneously, will we able determine their effects on the equilibrium quantity?
What will be an ideal response?
Yes. An increase in the demand increases the equilibrium. An increase in supply also increases the equilibrium quantity. Together, both shifts in supply and demand will increase the equilibrium quantity.
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Pizza and hamburgers are substitutes for consumers. A fall in the price of a pizza ________ the price of a hamburger and ________ the quantity of hamburgers
A) raises; increases B) raises; decreases C) lowers; increases D) lowers; decreases
Barter is
A) another type of money. B) printing too much money. C) the exchange of goods and services directly for other goods and services. D) the exchange of goods and services for any type of money.
A competitive price-taker firm would be willing to remain in the industry in the long run at zero economic profit because
a. it would find it too difficult to exit from the industry in the long run. b. accounting profit would be negative. c. it is covering all costs, including the opportunity cost of capital and labor. d. its sunk costs would prevent it from leaving the industry.
The figure below depicts the IS-LM-FE model with floating exchange rates.
The move from Point A to Point B is caused by
A. contractionary fiscal policy. B. expansionary monetary policy. C. expansionary fiscal policy. D. contractionary monetary policy.