Explain why demand for a monopolistically competitive firm's product is more elastic than the demand curve that a monopolist faces
What will be an ideal response?
Demand is more elastic than the demand curve that a monopolist faces because close substitutes for the products of a monopolistic competitor are available.
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The monetary rule is the view of the
If a country's budget deficit increases, then in the market for foreign-currency exchange,
a. the supply of its currency shifts right, so the exchange rate falls. b. the demand for its currency shifts right, so the exchange rate rises. c. the supply of its currency shifts left, so the exchange rate rises. d. the demand for its currency shifts left.so the exchange rate falls.
If a production possibilities curve were bowed in or convex to the origin of a graph, it would demonstrate:
A) increasing opportunity cost. B) decreasing opportunity cost. C) constant opportunity cost. D) fluctuating opportunity cost.
If Sara Thomas' disposable income increases from $4,000 to $4,500 and her level of saving increases from $200 to $300, it may be concluded that her marginal propensity to:
a. Consume is .75 b. Save is .30 c. Consume is .60 d. Consume is .80