In the long run, the price level is determined by aggregate supply.
a. true
b. false
a. true
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The demand for chicken wings is more elastic than the demand for razor blades. Suppose the government levies an equivalent tax on chicken wings and razor blades. The deadweight loss would be larger in the market for
a. chicken wings than in the market for razor blades because the quantity of chicken wings would fall by more than the quantity of razor blades. b. chicken wings than in the market for razor blades because the quantity of razor blades would fall by more than the quantity of chicken wings. c. razor blades than in the market for chicken wings because the quantity of chicken wings would fall by more than the quantity of razor blades. d. razor blades than in the market for chicken wings because the quantity of razor blades would fall by more than the quantity of chicken wings.
The marginal rate of technical substitution is
A. the slope of the isocost curve. B. the rate at which the firm can substitute labor for capital while holding total cost constant. C. the rate at which the firm can substitute labor for capital while holding output constant. D. both a and c E. none of the above
A surplus exists
A. when quantity supplied is greater than quantity demanded. B. in equilibrium. C. when quantity supplied is less that quantity demanded. D. at the market clearing price.
Use the figure below to answer the following question.
The diagram shows three supply curves for apples. Which of the following would cause the supply of apples to shift from S1 to S3?
A. an increase in the number of apple farmers B. a decrease in the price of apples in the market C. a decrease in the number of apple farmers D. a decrease in the price of resources used to produce apples