The kinked demand curve is composed of two segments of two demand curves that intersect. The two segments that make up the kinked demand curves are
a. both related to industry demand
b. derived by subtracting the firm's demand curve from the market demand curve and adding it to the industry demand curve
c. derived from the firm demand curve and the industry demand curve
d. the least elastic segment above price and the more elastic segment below price
e. the more elastic segment above price and the least elastic segment below price
E
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Appreciation of the Canadian dollar will
A. intensify an existing disequilibrium in Canada's balance of payments. B. make Canada's exports less expensive and its imports more expensive. C. make Canada's exports more expensive and its imports less expensive. D. make Canada's exports and imports both more expensive.
Within the framework of the AD-AS model, an increase in savings by households will
a. increase the supply of loanable funds and reduce interest rates. b. be offset by a decrease in savings by businesses. c. cause long-run fluctuations in the rate of consumption. d. result in a decline in aggregate demand, output, and employment.
In the long-run, the price elasticity of demand is usually
a. smaller than in the short-run. b. bigger than in the short-run. c. the same as in the short run. d. equal to zero. e. can't tell from the information given.
Refer to Figure 15-19. If the monopoly firm is not allowed to price discriminate, then consumer surplus amounts to
a. $3,125.
b. $1,562.50.
c. $0.
d. $6,250.