Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for laptop computers. Which panel best describes what happens in this market when the price of computer hard drives falls?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
A
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The assumption that the two goods are made using different factor intensities raises the likelihood of incomplete specialization after trade begins
Indicate whether the statement is true or false
In a simple economy without government or foreign trade,and output can be purchased only by consumers or by firms, saving must equal:
A. investment. B. depreciation. C. consumption. D. income.
When a firm has monopoly power, it
A) hires fewer workers because its marginal revenue lies below the demand curve. B) hires more workers because its marginal revenue lies below the demand curve. C) hires fewer workers because its marginal revenue lies above the demand curve. D) hires more workers because its marginal revenue lies above the demand curve.
If demand is represented as Qd = 18 - 6P and supply is represented as Qs = 3 + 9P, the demand curve intersects the y axis at a price of ________ and the supply curve intersects the y axis at a price of ________.
A. $18; $3 B. $21; $15 C. $12; $12 D. $6; $9