Refer to the figure above. What is the price effect of a price reduction from $6 to $4?
A) $300
B) $600
C) $900
D) $1,200
B
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The above payoff matrix shows the economic profits (in millions of dollars) of two firms in a duopoly that have agreed to a cartel agreement to restrict their output and set their prices equal to the monopoly price
Assuming the game is played once, the equilibrium outcome is where A) both choose the monopoly price. B) both choose the competitive price. C) firm A chooses the monopoly price and firm B chooses the competitive price. D) firm B chooses the monopoly price and firm A chooses the competitive price.
The existence of a union
A) has no effect on labor supply and demand. B) affects labor supply only. C) affects labor demand only. D) can affect both labor supply and labor demand.
Which of the following is TRUE about the World Bank?
A) It is a multinational agency that specializes in development loans. B) It is a U.S. agency that specializes in development loans. C) It is a U.N. sponsored agency that specializes in development loans. D) It is made up of all central banks in the world.
Assume a nation's current production possibilities are represented by the curve AB in the above diagram. Economic growth would best be indicated by a:
A. Shift in the curve from AB to CD
B. Shift in the curve from AB to EF
C. Movement from point 1 to point 2
D. Movement from point 3 to point 4