Assume that when the price of good Z is increased from $5 to $6, the total revenue earned increases from $600 to $690. Based on this information, we can conclude that over this range, demand for Z is:

Firms that continue to produce when sales are temporarily low in an effort to avoid costly fluctuations in production are engaging in ________

A) second degree price discrimination B) stock out avoidance C) work in progress D) production smoothing

If the players in the figure shown act in their own self-interest, then we know that Adidas will earn:

A. $2 million.
B. $8 million.
C. $6 million.
D. $10 million.

Constructing an accurate cost-of-living index is difficult because:

A. consumers have different tastes. B. prices of different goods change by different proportions. C. prices of different goods change by the same proportions. D. real and nominal income tend to move together.

Use the following graphs for a perfectly competitive market in the short run to answer the next question.The graphs suggest that in the long run, as automatic market adjustments occur, the demand faced by the perfectly competitive firm will

A. shift up. B. not shift. C. slope downward. D. shift down.