Refer to the given table.Price Per UnitColumn A Units Per YearColumn B Units Per Year$4011040$459550$508060$556570$605080 Suppose the columns in this table reflect demand and supply. If the current market price is $50, then you would expect:
A. supply to decrease.
B. the market price to rise.
C. the market price to fall.
D. demand to decrease and supply to decrease.
Answer: B
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When would the price be highest: when the utility is not regulated, when it is regulated using an average cost pricing rule, or when it is regulated using a marginal cost pricing rule? When would its price be lowest?
Suppose the economy is at point 1 in Figure 13.1. With output below potential output, it might not be possible to create any expectation of an increase in inflation
How, then, might output be brought back to potential? What would this look like on the graph?
In the price system
A) prices are set by government action. B) consumers alone set the price. C) producers alone set the price. D) prices are set by the interaction of supply and demand.
What do increases in consumer and business confidence lead to?
a. Higher consumption and lower investment demand b. Lower consumption and investment demand c. Higher consumption and investment demand d. Lower consumption and higher investment demand