Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. According to the share-the-gains, share-the-pain theory, we would expect
A. prices to increase by a little immediately and profits to decrease by a lot.
B. a quick increase in price maintains profits in the industry.
C. no increase in price.
D. there will be some increase in price but not immediately.
Answer: D
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What is the main difference between the type of money that was used before the invention of the printing press and today?
What will be an ideal response?
A resource is something that
a. is used to produce goods and services b. is provided by nature, not made by society c. exists in unlimited quantities d. must be produced by a firm e. consumes goods and services
Identify the correct statement. a. An increase in the price level in an economy will increase the real value of dollar-denominated assets. b. An increase in the price level in an economy will shift the aggregate expenditure line upward
c. An increase in the price level in an economy will decrease the equilibrium level of output demanded. d. An increase in the price level in an economy will cause an upward movement along the aggregate demand curve. e. An increase in the price level in an economy will shift the aggregate demand curve rightward.
"As output of one good expands, the opportunity cost of producing additional units of this good increases," is the law of _____________.
Fill in the blank(s) with the appropriate word(s).