Following adjustments to a new equilibrium in a market, the equilibrium quantity remains unchanged, but the market clearing price is now lower. Which of the following could definitely have caused this outcome?
A) Demand and supply both increased.
B) Demand and supply both decreased.
C) Demand increased, and supply decreased.
D) Demand decreased, and supply increased.
D
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Oil price hikes
A) decrease aggregate supply. B) decrease aggregate demand. C) increase aggregate supply. D) increase aggregate demand. E) increase potential GDP.
In the above figure, the efficient quantity is
A) 0 units. B) 70 units. C) 80 units. D) 100 units.
Economic growth may be represented by a:
A. production possibilities curve that remains fixed. B. rightward shift of the production possibilities curve. C. point outside (to the right) of the production possibilities curve. D. leftward shift of the production possibilities curve.
Suppose that the market for haircuts in a community is a perfectly competitive constant-cost industry and that the market is initially in long-run equilibrium. Subsequently, an increase in population increases the demand for haircuts. In the long run, we expect that:
Select one: a. more firms will enter the market, driving the price of haircuts up and the profits of individual firms back down to zero. b. firms will leave the market, driving the price of haircuts up and the profits of individual firms back down to zero. c. more firms will enter the market, driving the price of haircuts down and the profits of individual firms back down to zero. d. firms will leave the market, driving the price of haircuts up and the profits of individual firms