Given a downsloping demand curve and an upsloping supply curve for a product, an increase in the price of a substitute good will:
A. decrease equilibrium price and quantity.
B. decrease equilibrium price and increase equilibrium quantity.
C. increase equilibrium price and decrease equilibrium quantity.
D. increase equilibrium price and quantity.
Answer: D
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Answer the following statement true (T) or false (F)
Explain how changes in wealth, the price level, interest rates, and expectations alter the consumption curve
The primary technique used by business owners when they are facing mounting obligations and do not have the resources to finance continued operations is
a. informal reorganization b. informal liquidation c. bankruptcy d. selling the business e. none of these
A risk-neutral monopoly must set output before it knows the market price. There is a 50 percent chance the firm's demand curve will be P = 40 ? Q and a 50 percent chance it will be P = 60 ? Q. The marginal cost of the firm is MC = 3Q. The expected profit-maximizing price is:
A. $30. B. $40. C. $10. D. $20.