If the demand curve for bottled water shifts leftward and the supply curve of bottled water shifts leftward, the equilibrium
A) price of bottled water definitely increases.
B) price of bottled water definitely decreases.
C) quantity of bottled water definitely increases.
D) quantity of bottled water definitely decreases.
D
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The problems of raising the level of the inflation target include
A) if the zero-lower-bound problem is rare, then the benefits of a higher inflation target are not very large. B) the costs of higher inflation in terms of the distortions it produces in the economy are high. C) it is more difficult to stabilize the inflation rate at a higher targeting level. D) all of the above.
An increase in supply causes
A) quantity supplied to decrease. B) supply and price to increase. C) price to decrease. D) price to increase.
A competitive firm
a. and a monopolist are price takers. b. and a monopolist are price makers. c. is a price taker, whereas a monopolist is a price maker. d. is a price maker, whereas a monopolist is a price taker.
If firms are price setters, a small decline in the demand for their outputs will cause them to
A. reduce output in the short run, but reduce price in the long run. B. increase price in the short run to offset the effect on profits of a decline in output. C. reduce price and reduce the level of output produced. D. reduce price in the short run, but reduce output only in the long run.