Xanadu Corp has issued 90 million shares of stock, and it has no plans to issue any more in the near future. If the demand for Xanadu stock increases,
a. the price and quantity of Xanadu stock will both increase
b. the price and quantity of Xanadu stock will both decrease
c. the price will remain constant, and the quantity of Xanadu stock will increase
d. the quantity of Xanadu stock will remain constant, and the price will increase
e. the price will increase, and the quantity of Xanadu stock will decrease
D
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How can it be that people purchase more of a good while its price is rising?
A) The supply curve must be shifting to the left. B) The demand curve must be shifting to the right. C) Supply and demand do not change. D) It cannot happen, otherwise the law of demand is violated.
Microeconomics is the branch of economics in which you study inflation and unemployment in the economy
a. True b. False Indicate whether the statement is true or false
Output (Q)Total Fixed CostTotal Variable Cost020012052207320104201552021
Table 6.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $5,
A. the firm suffers a loss but is better off producing at the output where MR = MC. B. the firm suffers a loss and is better off shutting down. C. the market price is lower than its marginal cost at the profit-maximizing output level. D. the market price is lower than the average variable cost at the profit-maximizing output level.
In the classical model, a change in aggregate demand
A. causes changes in both the long-run real GDP and in the price level. B. causes a change in long-run real GDP but not in the price level. C. has no effect on either real GDP or the price level. D. causes a change in the price level but not in the long-run real GDP.