A permanent increase in demand ______ economic profit in the short run and some firms will ____ in the long run
A. does not change; exit the market
B. increases; enter the market
C. increases; raise their price
D. does not change; advertise their good
B The increase in demand leads to a higher price, which in-creases the firms' economic profit. The economic profit influ-ences other firms to enter the market.
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Consider the above figure. At a price level of 150
A) total planned production exceeds total planned real expenditures. B) total planned real expenditures exceed total planned real production. C) the price level would rise. D) inventories of unsold goods decline.
Headline inflation:
A. measures the changes in prices for the entire market basket of the average urban consumer. B. is inflation measured using the producer price index. C. measures price changes with food and energy costs taken out of the basket. D. is inflation measured using the retail price index.
Consumers who are loyal to a brand will purchase products under that brand name even if their prices are above other competing brands
a. True b. False Indicate whether the statement is true or false
The rule of 72 implies that a country will double its income in about 4 years if its growth rate is:
A. 25 percent. B. 18 percent. C. 8 percent. D. 12 percent.