Assume that coffee and tea are substitutes. When the price of coffee increases:
A. the demand for tea decreases.
B. the demand for tea increases.
C. the supply of tea increases.
D. the supply of tea decreases.
Answer: B
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Based on the figure below. Starting from long-run equilibrium at point C, a favorable inflation shock that decreases inflation from ? to ?1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. A; C B. B; A C. B; C D. A; B
What is the primary source for capital available to businesses? Name four methods of channeling these funds
What will be an ideal response?
The more bidders there are at an oral auction,
a. the higher the expected selling price b. the higher each bidder bids c. the longer that each bidder will continue to bid d. the less each bidder will shade his bid
The Moonbeam Corporation produces most of the total output in its industry. The firm unilaterally lowers its price to less than average variable cost until a competitor leaves the market. This example highlights ______.
a. collusive oligopoly b. perfect competition c. predatory pricing d. price discrimination