An increase in both supply and demand causes which of the following?
a. Equilibrium price falls.
b. Equilibrium price rises.
c. Equilibrium price change is indeterminate.
d. Equilibrium quantity decreases.
e. Equilibrium quantity change is indeterminate.
c
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Refer to Goods X and Y. If the marginal rate of good X in terms of good Y is large, then the indifference curve will be
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. convex. b. concave. c. steep. d. flat.
Which of the following could be threatening to an existing monopoly structure?
a. impossible-to-overcome barriers to entry b. the depletion of alternative resources that could be used to produce the good that is being produced by the monopolist c. the extension of years enforcing a patent right d. mergers e. technological innovation that makes the old techniques of producing a good obsolete
____ is the income actually available to the consumers that determines aggregate demand
a. Nominal income b. Net domestic product c. Income corrected for depreciation d. Disposable income
A mutual fund
a. is a financial institution that stands between savers and borrowers. b. is a financial intermediary. c. allows people with small amounts of money to diversify their holdings. d. All of the above are correct.