What are the accurate coordinates of the new equilibrium price?
a. P1; Q2
b. P1 Q1
c. P2; Q1
d. P2; Q2
d. P2; Q2
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Refer to Figure 28-4. Consider the shift in the short-run Phillips curves shown in the above graph. This shift may be explained by
A) either an increase in the natural rate of unemployment from 5.0 to 6.2 percent or an increase in the expected rate of inflation from 4.0 to 5.5 percent. B) an increase in the expected rate of inflation from 4.0 to 5.5 percent. C) an increase in the natural rate of unemployment from 5.0 to 6.2 percent. D) None of the above is correct.
When a perfectly competitive, well-functioning market is not in equilibrium:
A. total surplus can be increased by a change in market price. B. the market is not efficient. C. there are exchanges that can make some better off without someone becoming worse off. D. All of these are true.
Consider the production possibilities frontier displayed in the figure shown. Which of the following combinations could not be produced?
A. (20 watermelons, 400 bushels of apples)
B. (15 watermelons, 100 bushels of apples)
C. (10 watermelons, 150 bushels of apples)
D. (0 watermelons, 400 bushels of apples)
What is the present value of $5,000 to be received in one year if the current market interest rate is 6.0%?
a. $3,125 b. $4,717 c. $4,923 d. $5,300