If the demand for a product decreases, then we would expect equilibrium price
a. to increase and equilibrium quantity to decrease.
b. to decrease and equilibrium quantity to increase.
c. and equilibrium quantity to both increase.
d. and equilibrium quantity to both decrease.
d
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The phone bill for a company consists of both fixed and variable costs. Refer to the four-month data below and apply the high-low method to answer the question. Minutes Total Bill January 480 $4000 February 200 $2700 March 170 $2640 April 320 $2855 What is the fixed portion of the total cost?
When law-makers impose ceilings on the amount of annual interest charged by lenders, their actions have the effect of
A) excluding certain borrowers from the legally regulated credit market. B) expanding retail sales. C) increasing the number of loans made. D) lowering interest rates for most borrowers. E) redistributing income from creditors to debtors.
What best explains why real GDP per person is always driven to the subsistence level in the classical model?
A) Population growth occurs, increasing the supply of labor. B) Population growth occurs, shifting the labor supply curve leftward. C) Growth is not possible so the demand for labor never changes. D) Investment in capital decreases labor demand, decreasing the demand for labor.
If your income and the price level both rise by 5 percent, and you think you now have more real income, you are suffering from
A) diminishing marginal expectations. B) leakages. C) injections. D) money illusion.