If demand increases and supply decreases,
a. equilibrium price will fall and equilibrium quantity will rise
b. equilibrium price and quantity will both rise
c. equilibrium quantity will rise; equilibrium price will either rise or fall
d. equilibrium price will fall; equilibrium quantity will either rise or fall
e. equilibrium price will rise; equilibrium quantity will either rise, fall, or remain unchanged
E
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Use the following figure to answer the next question.
At which point does marginal cost (MC) equal average variable cost (AVC)?
A. Point B B. Point C C. Point D D. Point A
There has been a decrease in investment. As a result, real GDP will ________ in the short run, and ________ in the long run
A) increase; decrease to its initial value B) decrease; decrease further C) decrease; increase to its initial level D) increase; increase further
If the interest rate rises, then firms' investment spending:
A. falls. B. also rises. C. remains unchanged D. reacts unpredictably.
Organizations that transform resources into products are known as
A. households. B. factors. C. entrepreneurs. D. firms.