In Figure 9-13, assume the initial equilibrium at point A is disturbed by an increase in demand. If long-run equilibrium is established at point C, this is a(n)
a.
constant cost industry
b.
increasing-cost industry
c.
decreasing-cost industry
a
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If smartwatches are considered substitutes for smartphones, then the decline in the price of smartwatches would, all else equal
A) increase the demand for smartphones. B) decrease the quantity of smartphones demanded. C) decrease the demand for smartphones. D) increase the quantity of smartphones demanded.
Why would a candidate for political office speak in general instead of specific terms?
A) Because he or she believes voters want to hear generalities, not specifics. B) Because he or she believes voters are too busy to listen to specifics. C) Because he or she believes that specifics are too likely to label him or her as a member of an extreme-wing, and politically this would be undesirable. D) Because it is cheaper to get the message out if it is worded in general instead of specific terms.
The potential for a financial breakdown at one financial institution to spread throughout the financial system is known as a
A. moral hazard. B. liquidity risk. C. lending risk. D. systemic risk.