Even when the demand for one good is high, the price of the good is also affected by supply. The textbook illustrates this by comparing the price of two items that were auctioned on the same day
Which of the following describes the results of the auction?
A) A letter written by Abraham Lincoln sold for a higher price than a letter written by John Wilkes Booth.
B) A letter written by John Wilkes Booth sold for a higher price than a letter written by Lee Harvey Oswald.
C) A letter written by Abraham Lincoln was sold for a higher price than a letter written by Adam Smith.
D) A letter written by John Wilkes Booth sold for a higher price than a letter written by Abraham Lincoln.
D
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Compare the outcome in a market with a single-price monopoly to that in a perfectly competitive market
What will be an ideal response?
Patents are ________ barriers to entry and public franchises are ________ barriers to entry
A) legal; legal B) legal; natural C) natural; legal D) natural; natural
The accompanying table shows a pizzeria's fixed cost and variable cost at different levels of output. Pizzas sell for $20 each.Number of Pizzas Per DayFixed Cost ($/Day)Variable Cost ($/Day)050002550015050500250755004501005008501255001,650 When the pizzeria makes 100 pizzas a day, its fixed cost is ________ and its total cost is ________.
A. $350; $850 B. $850; $1,650 C. $500; $850 D. $500; $1,350