If supply increases and demand remains unchanged, equilibrium quantity will _______ and equilibrium price will ______________.
A. rise; rise
B. fall; fall
C. fall; rise
D. rise; fall
D. rise; fall
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Consider the production function for bottled water. All of the following would be considered variable inputs except:
A) the plastic bottles. B) the water the bottles are filled with. C) the machine used to fill each bottle. D) the electricity used to power the machine used to fill the bottles.
What happens to the price of the product and total revenue for a perfectly competitive firm if it doubles the amount of output it supplies in the market?
What will be an ideal response?
Which of the following events shifts the short-run aggregate supply curve to the right?
A. An increase in government spending on military equipment B. A drop in oil prices C. An increase in price expectations D. None of the above is correct.
The factors that affect the amounts that consumers, businesses, government, and foreigners wish to purchase at each price level are the:
A. real-balances, interest-rate, and foreign purchases effects. B. determinants of aggregate supply. C. determinants of aggregate demand. D. sole determinants of the equilibrium price level and the equilibrium real output.