If the long-run market supply curve is perfectly elastic, a fall in demand will cause the final equilibrium to be at:
A. the same price and the same output.
B. a lower price and a lower output.
C. a lower price but the same output.
D. the same price but a lower output.
Answer: D
You might also like to view...
Stabilization policy may be necessary to slow down the speed of the adjustment process
a. True b. False Indicate whether the statement is true or false
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.
U.S. tariffs on imported goods:
A. have steadily increased since the 1970s. B. have declined since the 1940s and are currently around 5 percent. C. are currently around 20 percent. D. are illegal.