Explain what caused the supply curve to shift more than the demand curve for HD televisions.
What will be an ideal response?
Expectations played a significant role with this shift. Suppliers expected the price to fall, so they had an incentive to produce units as fast as they could before the price fell appreciably. However, consumers delayed their buying decision, knowing that the price would fall in the future. As a result, the production of HD televisions increased while the demand for them was delayed, thereby increasing supply more than demand.
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Which of the following does not describe a pure market economy? a. The choices of buyers and sellers determine the market prices of goods and services. b. Prices serve as signals to buyers and sellers
c. Prices and outputs of most goods and services are stable over time. d. Owners of resources in greater demand by others tend to have higher incomes.
The infant industry argument is that:
a. those industries that produce products for infants should be protected. b. protectionism will provide consumers with lower prices. c. protectionism should be used to create a level playing field for the domestic firms to compete with foreign firms. d. protectionism promotes complete specialization in the country on the basis of comparative advantage. e. new industries should be protected from foreign competition until they have had adequate time to develop.
Total Revenue Product with six units of labor would be
A. $200.
B. $340.
C. $1,000.
D. $1,200.
When Paul Volcker became Federal Reserve chairman in 1979
A. the rate of inflation was relatively low, and he managed to raise it to 12 percent. B. the rate of inflation was 12 percent, and he managed to reduce it, but doing so caused a recession. C. the rate of inflation was 12 percent, and he was not able to bring it down during his time as chairman. D. the rate of inflation was already low and stable, but his policies made it lower and more stable.