What happens to quantity supplied when the price is raised?
A. It rises
B. It falls
C. It stays the same
D. It cannot be determined if it rises, falls, or stays the same
A. It rises
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In the 1980s, tax rates were cut, government revenues fell below expectations, and there was a then-historic peacetime deficit
a. True b. False Indicate whether the statement is true or false
Suppose that a price-taking firm charges $12 for its product and has a cost function given by C(Q) = 2Q + (Q2/60). The corresponding marginal cost is given by MC(Q) = 2 + (Q/30). How much output should the firm produce? What if the firm has $2,000 of avoidable fixed costs?
What will be an ideal response?
The law of comparative advantage explains why
A) countries but not individuals can benefit from specializing in the activities they do best. B) individuals as well as countries can benefit from specializing in the activities they do best. C) neither individuals nor countries can benefit from specializing in the activities they do best. D) individuals but not countries can benefit from specializing in the activities they do best.
Figure 7-10
depicts a demand curve with a price elasticity that is
a.
unitary, implying that a percent change in price leads to an equal percent change in quantity demanded.
b.
perfectly inelastic, implying that the same amount will be purchased regardless of the price of the good.
c.
equal to zero.
d.
both b and c.