Why does a typical monopolistically competitive firm face a downward-sloping demand curve?
Because its product is different from those offered by other firms.
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When aggregate demand increases, there is a movement ________ along the AS curve and ________
A) up; an upward shift of the short-run Phillips curve B) down; a movement down along the short-run Phillips curve C) up; a movement up along the short-run Phillips curve D) up; a movement down along the short-run Phillips curve E) down; a downward shift of the short-run Phillips curve
Does government failure necessarily condone an extreme libertarian point of view where the government does not intervene in markets at all?
What will be an ideal response?
How does the Fed decide which monetary measure should be the focus of its monetary policy choices?
A) The Fed would like to track a monetary measure that is most closely related to the market interest rate. B) The Fed would like to track a monetary measure that is most closely related to the quantity of money demanded by economic agents. C) The Fed would like to track a monetary measure that is most closely related to the level of real GDP and the price level. D) The Fed would like to track a monetary measure that is most closely related to government spending.
An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline in a market with downward sloping demand and upward sloping supply would raise the equilibrium price
A. by less than $1.00 per gallon. B. exactly $1.00 per gallon. C. by more than $1.00 per gallon. D. too little information to determine the impact on the equilibrium price.