Which of the following statements explains the relationship between supply, demand, price, and quantity in this graph?
a. The demand for land does not change with price, but an increase in supply will lower
the price, which can lead to a decrease in the quantity made available by owners.
b. The quantity of land supplied remains the same at any price, but an increase in
demand can increase the price owners receive and result in an increase in the overall
supply.
c. The price of land is determined by the quantity of acres supplied, and the higher the
acreage, the higher the demand and therefore the price paid to land owners.
d. The supply of land does not change with price, but an increase in demand will
increase the price, which can lead to an increase in the quantity made available by
owners.
d. The supply of land does not change with price, but an increase in demand will
increase the price, which can lead to an increase in the quantity made available by
owners.
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As inflation rates increase, money becomes less useful as a
A) store of value. B) double coincidence of wants. C) unit of account. D) medium of exchange.
In the short run, a firm in monopolistic competition produces where
A) MR = MC and economic profit is equal to zero. B) MR = MC. C) the given market price is equal to MC and economic profit is equal to zero. D) the given market price is equal to MC.
Which of the following conditions describes a recessionary gap?
A) The short-run equilibrium level of real GDP is above the long-run level of real GDP. B) The short-run equilibrium level of real GDP is below the long-run level of real GDP. C) The actual interest rate is above the equilibrium interest rate. D) The actual interest rate is below the equilibrium interest rate.
When equilibrium GDP falls below potential GDP, an inflationary gap exists
a. True b. False Indicate whether the statement is true or false