Figure 11-9
In Figure 11-9, how much more than the short-run competitive price will the profit-maximizing monopolist charge?
a.
$1
b.
$2
c.
$3
d.
$10
a
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Automatic stabilizers include
A) changes in induced taxes and changes in needs-tested spending. B) increases or decreases of tax rates and changes in needs-tested spending. C) changes in induced taxes and changes in discretionary spending. D) changes in discretionary spending and changes in needs-tested spending. E) changes in the federal funds interest rate brought about by Fed policy.
Uber uses what is known as surge pricing to set prices based on the number of people who request rides at a given time in a given area. Based on this pricing method, prices will
A) fall when supply decreases. B) rise when demand decreases. C) rise when supply increases. D) rise when demand increases.
Sandy's current consumer surplus for candy is 20. Candy is an inferior good for her. When her income increases and the price of candy remains unchanged, her consumer surplus will
A) increase. B) decrease. C) remain the same. D) Not enough information.
Assuming the economy in the graph shown is currently at equilibrium A, if the government wanted to enact a policy it would likely enact:
A. expansionary fiscal policy in an effort to move aggregate demand to the right.
B. contractionary fiscal policy in an effort to move aggregate demand to the left.
C. expansionary fiscal policy in an effort to move aggregate demand to the left.
D. contractionary fiscal policy in an effort to move aggregate demand to the right.