Refer to the accompanying figure, which shows the market for cups of coffee. At the original market equilibrium:
A. 50 cups are sold per hour at a price of $1.00 each.
B. 60 cups are sold per hour at a price of $1.50 each.
C. 40 cups are sold per hour at a price of $2.00 each.
D. 50 cups are sold per hour at a price of $2.50 each.
Answer: C
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What will be an ideal response?
According to new Keynesian economics:
a. the aggregate supply curve is horizontal at relatively low levels of real GDP and becomes negatively sloped, as more and more industries reach their full capacity level of output. b. the aggregate supply curve is negatively sloped at relatively low levels of real GDP and becomes horizontal, as more and more industries reach their full capacity level of output. c. the aggregate supply curve is horizontal at relatively low levels of real GDP and becomes positively sloped, as more and more industries reach their full capacity level of output. d. the aggregate supply curve is positively sloped at relatively low levels of real GDP and becomes horizontal, as more and more industries reach their full capacity level of output. e. the aggregate supply curve is positively sloped at relatively low levels of real GDP and becomes negatively sloped, as more and more industries reach their full capacity level of output.
If the price level falls by 5%, then all else being equal, the long-run aggregate supply curve will:
What will be an ideal response?
The nondiscriminating monopolist's demand curve:
A. is less elastic than a purely competitive firm's demand curve. B. is perfectly elastic. C. coincides with its marginal revenue curve. D. is perfectly inelastic.