When buyers believe that rising prices will continue to rise, this can lead directly to
A. a burst.
B. a bubble.
C. deflation.
D. bankruptcy.
Answer: B
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In a supply-demand diagram, the law of supply is illustrated by
a. shifting the supply curve to the right as suppliers expand production and to the left as they contract production. b. drawing the supply curve so that it slopes upward. c. showing how the equilibrium point changes as the supply curve shifts. d. drawing a vertical line at the quantity that producers choose to supply.
One commonly used test in checking for the presence of autocorrelation when working with time series data is the ____
a. F-test b. Durbin-Watson test c. t-test d. z-test e. none of the above
Ceteris paribus, the fear among travelers created by the 9-11 attacks would have what impact on the market for air travel?
a. an increase in equilibrium price and an increase in equilibrium quantity. b. an increase in equilibrium price and a decrease in equilibrium quantity. c. a decrease in equilibrium price and an increase in equilibrium quantity. d. a decrease in equilibrium price and a decrease in equilibrium quantity.
If monopolistic competitors are taking losses, in the long run firms ________ and market price will ________.
Fill in the blank(s) with the appropriate word(s).