If the price of a good decreases by 10% and the quantity demanded increases by 10%, then at that price, the good is
A. unit elastic.
B. perfectly inelastic.
C. elastic.
D. inelastic.
Answer: A
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In an increasing cost industry, an increase in industry output will
A) lead to a higher market price. B) lead to a lower market price. C) shift each firm's average fixed cost curve down. D) shift each firm's short run supply curve down.
It's easy for a private firm to provide a public good because of free riders
a. True b. False Indicate whether the statement is true or false
According to the modern expectational Phillips curve illustrated inFigure 15-2 , unemployment will temporarily rise above the natural rate of unemployment when
a. inflation turns out to be lower than what people expected.
b. inflation turns out to be higher than what people expected.
c. inflation turns out to be equal to what people expected.
d. all of the above are true.a
Exhibit 7-15 Long-run average cost
In Exhibit 7-15, diseconomies of scale are shown in the range of:
A. 0 to 500 units per week. B. 500 to 1,000 units per week. C. 1,000 to 2,000 units per week. D. zero per week.