Natural gas is used as a source of energy in many manufacturing processes. Assume large new deposits of natural gas are discovered in Nebraska, which increase the supply of natural gas and decreased the price of natural gas. This would cause
A. the short-run aggregate supply curve to become nearly vertical at all levels of output.
B. the short-run aggregate supply curve to shift to the left.
C. the short-run aggregate supply curve to become flatter.
D. the short-run aggregate supply curve to shift to the right.
Answer: D
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Movie theaters usually set lower prices for children than for adults because
A) children can be served at lower costs. B) they expect to make up the loss on the sale of refreshments. C) they think the price elasticity of demand for movie tickets is quite elastic for children at the regular or adult price. D) they want to get young people into the habit of attending movies.
Refer to Table 4-13. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. The equilibrium price and quantity for Aunt Maud's lotion are $20 and 30 thousand units. What is the value of consumer surplus?
A) $300 thousand B) $450 thousand C) $900 thousand D) $1,500 thousand
Describe how Mexico's development strategy changed from the 1950s to today and how that changed the production location decisions of firms
What will be an ideal response?
Refer to the game between James and Theodore depicted in Figure 12.1. Which of the following is true?
A. If James chooses Up, Theodore's best response is to choose Left.
B. If James chooses Down, Theodore's best response is to choose Left.
C. If Theodore chooses Left, James's best response is to choose Up.
D. If Theodore chooses Right, James's best response is to choose Up.