Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. Suppose a technological advance increases the quantity of disks supplied at each price by 25 million
What is the new equilibrium price and the new equilibrium quantity of Blu-rays?
The initial equilibrium price is $11.50 and the initial equilibrium quantity is 30 million disks per month. The technological advance increases the supply by 25 million disks. As a result, the equilibrium price falls to $11.00 and the equilibrium quantity increases to 40 million disks.
You might also like to view...
Because S&Ls were FSLIC insured, they
a. were less encouraged to make risky investments b. were less likely to make questionable loans c. could not venture into speculative land deals d. were less inclined to be cautious about the quality of the loans they made e. were safer than with the FDIC
Larry looks at his wage statement. How can he recognize what is known as payroll tax?
a. The tax will be funded entirely by his employer. b. The tax will be entirely funded from his own wages. c. The tax will be broken down into an hourly rate. d. The tax will come from his wages and his employer’s contribution.
Figure 33-4
?
Figure 33-4 shows four movements of the inflation rate and the unemployment rate. Which panel shows the movement associated with a “supply shock” like those of the 1970s?
A. 1 B. 2 C. 3 D. 4
Figure 10.1 depicts a firm's marginal revenue product curve. If the firm maximizes its profit and the hourly wage is $12, how many hours of labor will the firm demand?
A. smaller than 30 hours B. between 30 hours and 40 hours C. between 40 hours and 50 hours D. greater than 50 hours