Suppose that only one curve shifts. If you observe that the equilibrium price and equilibrium quantity increased, then the market experienced a(n):
A. decrease in supply.
B. increase in demand.
C. increase in supply.
D. decrease in demand.
Answer: B
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The bowed outward shape of the production possibilities frontier in the above figure indicates that
A) some resources are better suited for producing computers. B) the opportunity cost of producing more computers decreases as more computers are produced. C) computer technology is subject to the principle of decreasing costs. D) All of the above answers are correct.
In which market structure is it not possible to practice price discrimination?
A) oligopoly B) monopolistic competition C) monopoly D) perfect competition
Which of the following actions could be undertaken if the government wants to reduce an inflationary gap?
A) Increase taxes and reduce government spending. B) Reduce taxes and increase government spending. C) Increase taxes and increase government spending. D) Reduce taxes and reduce government spending.
In oligopoly, one expects
A. frequent introduction of new or redesigned products. B. aggressive advertising campaigns. C. intense marketing research into the impact of price changes. D. All of the responses are correct.