If demand for a product increases, ceteris paribus, the equilibrium:
A. price increases.
B. price decreases.
C. price remains unchanged.
D. quantity decreases.
Answer: A
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If Good Smells, a perfume manufacturer, purchases several local retail shops to sell their perfumes, this is an example of ________.
A) outsourcing B) divestiture C) backward integration D) forward integration
Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. Adding a third worker increases production:
A. by 60 hats.
B. by more than the second worker.
C. to 110 hats.
D. All of these are true.
In the Cournot model, each firm assumes that its rival will ____ its output when the firm adjusts its own output. Which word best completes the sentence?
a. increase b. not change c. decrease d. adjust
The rate of interest is the price at which money is borrowed and loaned
a. True b. False Indicate whether the statement is true or false