An increase in the price of a substitute shifts the demand curve to the _______
a. right
b. left
c. it does not change the demand curve
d. none of the above
a
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Under what circumstances do firms in a balanced oligopoly arrive at a Nash equilibrium outcome?
A national chain of grocery stores wants to finance the construction of several new stores. The firm has limited internal funds, so it likely will
a. demand the required funds by buying bonds. b. demand the required funds by selling bonds. c. supply the required funds by buying bonds. d. supply the required funds by selling bonds.
The wholesale price of cranberries in the market is currently $0.83/lb. The quantity supplied at this price is 90,000 pounds. The quantity demanded is 95,000 pounds. In this case, there is:
a. Excess supply in the market and this is a signal for sellers to decrease price b. Excess supply in the market and this is a signal for suppliers to increase price c. Excess demand in the market and this is a signal for consumers to buy less d. Excess demand in the market and this is a signal for consumers to buy more e. The market is in equilibrium
Which of the following is an example of a normative question?
a. When will the government increase spending on education? b. What effect will the government’s increased spending on education have? c. How much will the government increase spending for education? d. Should the government increase spending for education?