When the price of computer printers decreased from $100 to $85, the number of computer printers produced fell from 1,000 per week to 850 per week. Using this information, we know the supply of computer printers is
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly inelastic.
Answer: C
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In the short run, a perfectly competitive firm may earn economic profits that are
a. positive. b. positive but very small. c. negative. d. all of the above.
The aggregate demand curve is downward sloping because a higher price level induces producers to produce more
Indicate whether the statement is true or false
When the interest rate falls,
a. the opportunity cost of holding money rises b. people shift out of holding interest-yielding asset holdings into holding money c. the quantity of money people will hold decreases d. investment spending decreases e. real GDP will decrease
The demand curve in a purely competitive industry is ______, while the demand curve to a single firm in that industry is ______
A. perfectly inelastic; perfectly elastic B. downsloping; perfectly elastic C. downsloping; perfectly inelastic D. perfectly elastic; downsloping