Assume the demand and supply functions for good X can be written as Qd = 1000 - 40Px Qs = -200 + 20Px In this example, equilibrium price is $20 and the equilibrium quantity is 200
Indicate whether the statement is true or false
TRUE
You might also like to view...
Suppose the economy is in an equilibrium in which real GDP is less than potential GDP. To increase real GDP, the government can use a fiscal stimulus of
A) increasing taxes only. B) decreasing government expenditure only. C) decreasing taxes and/or increasing government expenditure. D) decreasing government expenditure and simultaneously increasing taxes. E) increasing the quantity of money.
Fixed costs are
A) a production expense that does not vary with output. B) a production expense that changes with the quantity of output produced. C) equal to total cost divided by the units of output produced. D) the amount by which a firm's cost changes if the firm produces one more unit of output.
Basket of goods A is on an indifference curve that lies closer to the origin than basket B. From this we know that
A) the prices of the goods in A are less than the prices of the goods in B. B) the satisfaction from consuming A is more than the satisfaction from consuming B. C) the marginal utility from consuming A is less than the marginal utility from consuming B. D) the satisfaction from consuming A is less than the satisfaction from consuming B.
Country A-2020 Transactions (billions of dollars)
In the above table, the merchandise trade balance for Country A is ________ billion dollars.
A. +100 B. +150 C. -100 D. -150