Holding supply constant, an increase in demand will

A) increase both the quantity and price.
B) increase the equilibrium price and decrease the equilibrium quantity.
C) decrease the equilibrium price and increase the equilibrium quantity.
D) decrease both the quantity and price.


A

Economics

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What criticism does the textbook level against the cost-plus-markup theory of price setting?

A) The theory does not agree with what businessmen say about price setting. B) The theory does not account for vastly different percentage markups on different products. C) The theory implies firms will sometimes want to set prices below average cost per unit. D) The theory ignores sunk costs. E) All of the above.

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Historically, why did the import-substitution strategy become popular among developing nations?

What will be an ideal response?

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If a monopoly is maximizing profits,

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