Refer to the above figure. Moving from point A to point B indicates
A. a decrease in supply.
B. a decrease in quantity supplied.
C. an increase in supply.
D. an increase in quantity supplied.
Answer: B
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When a monopolist integrates vertically with another monopolist the result:
a. is always beneficial to consumers. b. is never beneficial to consumers. c. may or may not be beneficial to consumers. d. does not have any effect on consumers.
When drawn against the real interest rate, the output demand curve unambiguously shifts to the right if either or both of the following occur
A) an increase in current taxes and an increase in future taxes B) an increase in current taxes and a decrease in future taxes C) a decrease in current taxes and an increase in future taxes D) a decrease in current taxes and a decrease in future taxes
If the nominal interest rate is 8 percent and the real interest rate is 5.5 percent, then the inflation rate is
a. -2.5 percent. b. 0.45 percent. c. 2.5 percent. d. 13.5 percent.
If demand for a good is elastic, then the price elasticity will be:
A. equal to one. B. equal to zero. C. greater than one. D. less than one.