All other factors being constant, a reduction in price tends to cause which of the following?
A) an increase in supply and an increase in demand
B) a reduction in supply and an increase in demand
C) an increase in quantity supplied and a reduction in quantity demanded
D) a reduction in quantity supplied and an increase in quantity demanded
D
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Which of the following is a possible solution when a scarce resource is subject to the tragedy of the commons?
A) force people to move away from the commons B) offer subsidies to consumers C) persuade people to use less of the scarce resource through an advertising campaign D) access to the commons can be restricted through community norms and laws
The third stage in the regulatory process is
A) a crisis. B) response by the financial system. C) regulation. D) regulatory response.
In the short-run, a monopolistically competitive firm:
a. can earn only a normal profit. b. will produce at the point where marginal revenue is greater than marginal cost, in order to maximize profits. c. will produce at the point at which price equals minimum ATC, to maximize profits. d. will charge a price equal to its marginal revenue. e. will shut down temporarily if price is less than AVC.
Frictional unemployment is a "necessary" cost of a dynamic economy
a. True b. False Indicate whether the statement is true or false