Suppose there are 100 consumers with identical individual demand curves. When the price of a movie ticket is $8, the quantity demanded for each person is 5 . When the price is $4, the quantity demanded for each person is 9 . Assuming the law of demand holds, which of the following choices is the most likely quantity demanded in the market when the price is $6?
a. 700
b. 1,200
c. 400
d. 1,000
e. 100
a
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Suppose the U.S. GDP growth rate is slower relative to other countries' GDP growth rates. This will
A) move the economy up along a stationary aggregate demand curve. B) shift the aggregate demand curve to the left. C) shift the aggregate demand curve to the right. D) move the economy down along a stationary aggregate demand curve.
Boeing Corporation and Airbus Industries are the only two producers of long-range commercial aircraft. This market is not perfectly competitive because:
A) each company has annual sales over $10 billion. B) each company can significantly affect prices. C) Airbus receives subsidies from the European Union. D) Airbus cannot sell aircraft to the United States government. E) all of the above
If multiplier effects are ____ than policy makers expect or the natural rate of real output is _____ than expected, monetary policy will tend to overshoot its intended effects
a. Greater; greater. b. Greater; less c. Less; greater d. Less; less