Suppose an industry has 100 firms, each with supply curve P = 50 + 10Q. Furthermore, suppose the market demand curve is given by P = 200 - 0.9Q. What is the industry supply curve?
A. P = 50 + 0.1Q
B. P = -500 + 10P
C. P = 50 + 10 Q
D. P = 500 + Q
Answer: A
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During the last four decades,
a. the total expenditures of Americans on health care have been relatively constant. b. the share of health-care expenditures covered by a third party (either the government or an insurance company) has increased substantially. c. the prices of health-care services have risen but not as rapidly as the general level of prices. d. health-care providers have lowered prices in response to the rapid increase in medical technology.
A price ceiling that is set below the equilibrium price will result in:
A. a shortage of the good. B. a surplus of the good. C. higher total economic surplus. D. higher producer surplus.
An increase in the equilibrium quantity of good B can be caused by
A. a technological improvement in the process of producing good B. B. an increase in the price of good B. C. a reduction in the number of producers of good B. D. an increase the price of inputs utilized in producing good B.
The ratio of the change in the equilibrium level of real GDP to the change in autonomous real expenditures is the
A. average propensity to consume. B. multiplier. C. marginal propensity to consume. D. unplanned investment.