Given the information in the graph above, is the firm in the short run or the long run?
Short run since the firm is making a profit.
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Larry consumes at a point on his budget line where his marginal rate of substitution is less than the magnitude of the slope of his budget line. As Larry moves toward his consumer equilibrium point, he will move to a
A) lower budget line. B) higher budget line. C) lower indifference curve. D) higher indifference curve.
The IS curve shows the combinations of ________ and ________ where the goods market is in equilibrium
A) aggregate expenditure; real GDP B) the real interest rate; real GDP C) potential GDP; aggregate expenditure D) the nominal interest rate; the quantity of money
Suppose the government imposed a minimum price in a market and a reporter for a local newspaper wrote a story on it. The headline on the story would read:
a. Government Action Calls For Ration Coupons b. Rationing Price Replaces Market Price c. Price Ceiling Replaces Equilibrium Price d. Price Floor Replaces Equilibrium Price e. Equilibrium Price Lowered
The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q. If demand changes from P = 10 - .2Q to P = 7 - .3Q, the new equilibrium price is
A. 2. B. 4. C. 6. D. 10.