Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a bagel ________ and the equilibrium quantity ________
A) rises; increases
B) does not change; does not change
C) falls; increases
D) rises; decreases
E) falls; decreases
D
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Which of the following factors will make the demand for a product more elastic?
A) The product has no close substitutes. B) A very small proportion of income is spent on the good. C) A long time period has elapsed since the product's price changed. D) The change in the product's price was unexpected.
Does an oligopoly produce the efficient quantity of output or does it create a deadweight loss? Do the firms want to produce the efficient quantity of output? Explain your answer
What will be an ideal response?
When there is political instability in another country, the United States can expect
A) an increase in the capital account balance due to an increase in the current account. B) an increase in the capital account balance due to the movement of assets to the U.S. C) a decrease in the balance of payments due to a decrease in special drawing rights. D) a decrease in the balance of payments due to a decrease in the demand for goods and services.
If the demand for a particular farm product is inelastic between price P1 and P2 (where P2 > P1), farmers as a group would want to sell their product at the
A) higher price, but an individual farmer would rather sell his product at the lower price. B) higher price, and an individual farmer would rather sell his product at the higher price, too. C) lower price, but an individual farmer would rather sell his product at the higher price. D) lower price, and an individual farmer would rather sell his product at the lower price, too.