Which of the following shifts the short-run aggregate supply curve to the right?
a. a decrease in the actual price level
b. an increase in the actual price level
c. a decrease in the expected price level
d. an increase in the expected price level
c
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Robert is participating in a Dutch auction. If he values the item being auctioned at $5,500 and there are 5 bidders in total, what should Robert's optimal bidding strategy be?
What will be an ideal response?
Two firms in an industry act as a cartel, with each firm agreeing to charge a price of $16 and sell two units of output. If one of them cheats and produces two more units of output, the cheating firm's total revenue increases by ______ and the other firm's total revenue decreases by ______.
Fill in the blank(s) with the appropriate word(s).
The shorter the time period that suppliers have to adjust to price changes, the
A. lower will be the price elasticity of supply. B. higher will be the price elasticity of supply. C. lower will be the price elasticity of demand. D. higher will be the price elasticity of demand.
Situations in which the assumption of efficient, competitive markets fails to hold are called:
A. market failures. B. market interventions. C. inelastic-response markets. D. missing markets.