When a monopolistically competitive firm cuts its price to increase its sales, it experiences a gain in revenue due to the
A) substitution effect.
B) income effect.
C) price effect.
D) output effect.
Answer: D
You might also like to view...
Suppose the price of coffee is $3, the price of a bagel is $2 and a person's budget is $40. The budget line's equation is
A) $2/Qbagel + $3/Qcoffee = $40. B) $2(Qbagel) + $3(Qcoffee) = $40. C) Qbagel /$2 + Qcoffee /$3 = $40. D) Qbagel + Qcoffee = $40/($3 + $2).
The above gives some of the balance of payments accounts of the United States in 2020
a) What is the current account balance? b) What is the capital account balance? c) What is the official settlements account balance?
Fluctuating interest rates tend to stabilize real output when the
A) IS curve is flat. B) IS curve is steep. C) LM curve is flat. D) LM curve is steep.
Economists initially viewed the Phillips curve as a structural relationship, meaning that the relationship between the two measured variables
A) can change only slightly over time. B) can change greatly over time. C) will not change over time. D) will change in the short run but not in the long run.