Acquiring a firm that sells a substitute good will
a. Make the demand curve more inelastic
b. Make the demand curve more elastic
c. Make MR>MC
d. Will have no effect on the demand curve
a
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
If the equilibrium price of good X is $5 and a price ceiling is imposed at $4, the result will be a(n):
a. accumulation of inventories of unsold gas. b. shortage. c. surplus. d. all of these.
Dumping means that a firm is
A) violating environmental laws. B) selling a product in a foreign country at a lower price than it does at home. C) selling a product in a foreign country at a higher price than it does at home. D) selling a product of lower quality in a foreign country.
A small open economy increases its investment demand. This causes the world real interest rate to ________ and the country's current account balance to ________.
A. rise; rise B. remain unchanged; fall C. remain unchanged; rise D. rise; fall