Discuss the impact of demand and supply changes on market equilibrium price and quantity. Express this graphically
An increase in demand will increase equilibrium price and quantity; and vice versa. An increase in supply will decrease equilibrium price and increase the equilibrium quantity; and vice versa. A simultaneous increase in demand and supply will assuredly increase the equilibrium quantity but the impact on equilibrium price is uncertain. A simultaneous increase in demand and decrease in supply will assuredly increase the equilibrium price but the impact on equilibrium quantity is uncertain.
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Which of the following industry types features a downward-sloping long-run supply curve?
a. An oligopoly industry b. A constant-cost industry c. A decreasing-cost industry d. A monopolistically competitive industry
Other things the same, continued technological progress and continued increases in the money supply would unambiguously lead to
a. rising prices only. b. rising real GDP only. c. rising prices and rising real GDP. d. neither rising prices nor rising real GDP.
As a percentage of national income, corporate profits and proprietors' income is almost
A. 75%. B. 40%. C. 17%. D. 22%.
If the price is between $130 and $145, what will the firm do (a) in the short run? (b) in the long run?
