Peanut butter and jelly are complements for consumers. In 2015, the price of peanut butter increased. As a result, the ________ increased, which led to ________ in the price of jelly and ________ in the quantity of jelly
A) demand for jelly; a decrease; a decrease
B) supply of jelly; a decrease; an increase
C) supply of jelly; an increase; a decrease
D) demand for jelly; an increase; an increase
A
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In the Keynesian model in the long run, an increase in the money supply will raise
A) the price level but not the level of output. B) the level of output but not the price level. C) both the level of output and the price level. D) neither the level of output nor the price level.
What happens to the price of bonds when the Fed is selling bonds? What happens to the interest rate? What happens to the money supply?
What will be an ideal response?
Diseconomies of scale exist for all of the following reasons except
a. bureaucratic inefficiencies b. management problems c. failures in information flows d. firm size is too small e. organizational problems
Figure 11-1
The Red Cross is virtually the only operator of blood banks in the United States. In Figure 11-1 are the demand and cost curves facing the Red Cross blood bank. If the Red Cross were to set price and quantity at the level that it would obtain in the long run in a competitive industry, how much blood would it sell?
A. OA B. OB C. OD D. OC