The kinked demand curve is based on the idea that
A) you will follow my price increase but not my price cut.
B) you will follow my price cut but not my price increase.
C) you will follow all price changes I might initiate.
D) you will not follow my behavior at all.
B
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When the production possibilities curve shifts outward,
A) the price level rises in the long run. B) the long-run aggregate supply curve is unchanged. C) the long-run aggregate supply curve shifts to the left. D) the long-run aggregate supply curve shifts to the right.
Refer to Figure 7.1. The diagram above contains ________ cost curves
A) short run B) intermediate run C) long run D) both short run and long run.
Refer to the above figure. If an individual firm wants to maximize economic profits, it should
A) charge $5 for its product. B) charge more than $5 for its product since increasing the price will increase revenues. C) charge less than $5 for its product since a lower price will attract more customers. D) withdraw its product from the market forcing the market price up.
Other things the same, when a Canadian company imports bicycles from the U.S., the open-economy macroeconomic model treats this transaction as part of the demand for dollars in the U.S. foreign-currency exchange market
a. True b. False Indicate whether the statement is true or false