The figure illustrates the demand for and supply for jeans. Suppose jeans are a normal good and people's incomes increase
At the initial price of $50 for a pair of jeans, after the increase in income the quantity demanded is ________ than the equilibrium quantity and there is a ________ of jeans. A) greater; surplus
B) greater; shortage
C) less; surplus
D) less; shortage
D
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A monopolist has the demand and marginal cost schedules given in the above table. If the monopoly can perfectly price discriminate, what is the profit-maximizing level of output and price?
What will be an ideal response?
Total bank reserves are an example of a Federal Reserve
A) tool. B) intermediate target. C) operating target. D) objective.
The marginal revenue product curve represents a firm's demand curve for a resource
a. True b. False
You have just bought a used car, and drive away satisfied that you've made a good deal on the purchase. What would an economist say about your "gain" on the deal?
a. Your gain has clearly meant that the seller lost on the deal. b. The seller has clearly gained, and you have actually lost on the deal. c. Both you and the seller have gained something. d. If your gain is too large, then the deal should be re-negotiated. e. If the seller's loss is too large, then the deal should be re-negotiated.