Exhibit 4-2 Supply and demand curves
The market shown in Exhibit 4-2 is initially in equilibrium at E1. Changes in market conditions result in a new equilibrium at E2. This change is stated as a(n):
A. increase in supply and an increase in quantity demanded.
B. increase in supply and a decrease in demand.
C. decrease in supply and a decrease in quantity demanded.
D. increase in demand and an increase in supply.
Answer: A
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Refer to Figure 8.1. If each player cooperated with one another rather than playing their dominant strategies, the economic pie would grow by
A) $0. B) $280. C) $490. D) $560.
A factor determining the supply of U.S. dollars in the foreign exchange market is the
A) expected future exchange rate. B) expected future interest rate in the United States. C) U.S. supply of exports. D) expected future interest rate in foreign countries.
If demand is inelastic, a drop in price will raise total expenditure.
Answer the following statement true (T) or false (F)
Recall from your reading of the text: Which game or sport contains the same strategic elements as the management of a firm in oligopoly?
a. darts b. 50 meter hurdles c. chess d. speed skating e. solitaire