Bicycles are made out of steel. If the price of steel increases, there is a shift in the supply curve of bicycles that leads to
A) a shift in the demand curve for bicycles.
B) a temporary surplus of bicycles.
C) a permanent surplus of bicycles.
D) an increase in the price of a bicycle.
D
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Explain how we "read" the three scatter diagrams in Figs. A1.3 and A1.4
What will be an ideal response?
Carl's Computer Center sells computers to business firms. Businesses then use the computers to produce other goods and services. Over the past year,
sales representatives were paid $3.5 million, $0.5 million went for rent on the building, $0.5 million went for taxes, $0.5 million was profit for Carl, and $10 million was paid for computers at the wholesale level. What was the firm's total contribution to GDP?
When someone's willingness to pay is the same as the actual price paid for an item:
A. the individual will not purchase the item. B. the individual's surplus is zero. C. surplus cannot be maximized. D. All of these are true.
If a firm is losing money, this implies that
a. consumers do not understand the value of the product. b. the value of the resources used to make the product is being reduced. c. the firm must go out of business immediately. d. this product cannot be produced profitably in the long run.