We cannot predict the effect on the equilibrium quantity, but know that the market clearing price will decrease when
A) supply increases and demand increases.
B) supply decreases and demand decreases.
C) supply decreases and at the same time demand increases.
D) supply increases and at the same time demand decreases.
D
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Aggregate demand in an economy with no government or foreign trade is
A) consumer expenditure plus actual investment. B) consumer expenditure plus planned investment. C) consumer expenditure plus inventory investment. D) consumer expenditure plus fixed investment.
An increase in price, facing a perfectly competitive firm, means that the profit-maximizing output level will increase
a. True b. False Indicate whether the statement is true or false
Hilda's Hair Hysteria earned $3,750 in total revenue last month when it sold 125 haircuts. This month it earned $3,600 in total revenue when it sold 90 haircuts. The price elasticity of demand for Hilda's Hair Hysteria is
a. 0.33. b. 0.88. c. 1.14. d. 7.98.
Which one of the following statements is FALSE?
A. The relative price of a good is its price measured relative to the price of other goods. B. When the price of beer goes up by the same proportion as the prices of all other goods, the relative price of beer does not change. C. The nominal price of a good is its price measured in current dollars. D. Generally, what matters most to consumers is what a good costs in dollars.