The table below shows data for India's economy. Real GDP is measured in millions of rupees
Price level Real GDP
supplied in the short run Real GDP demanded
a 114 23,501 35,898
b 120 25,355 32,341
c 125 27,670 27,670
d 131 30,366 18,569
e 138 33,164 15,898
If potential GDP in India is ________ million rupees, India is experiencing ________.
A) 26,500; an inflationary gap
B) 28,500; an above-full-employment gap
C) 26,500; a recessionary gap
D) 30,000; a potential GDP gap
A
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Claudia went to a department store to buy a few things for her new house. She found out that several items in the store were on discount and decided to make the most of the deals offered
However, as she started using the things that she bought, she realized that many of these items were defective. This happened due to: A) the presence of positive externalities. B) the presence of negative externalities. C) asymmetric information. D) moral hazard.
When price was 10, quantity demanded was 50. When price decreased to 8, quantity demanded increased to 60. Therefore, when price decreased, total revenue
A. decreased from 500 to 480, indicating that demand is inelastic. B. decreased from 500 to 480, indicating that demand is elastic. C. increased from 480 to 500, indicating that demand is inelastic. D. increased from 480 to 500, indicating that demand is elastic.
Refer to Table 3.1 to answer the following questionTable 3.1 Individual Demand and Supply SchedulesQuantity Demanded byPriceAlejandroBenCarlMarket$8.00842________6.001244________4.002046________2.002246________Quantity Supplied byPriceAveryBrandonCassandra $8.006046________$6.004244________$4.002442________$2.00640________In Table 3.1, if the price is $2, the market will
A. Experience a surplus of 30 units. B. Experience a surplus of 56 units. C. Experience a shortage of 22 units. D. Be in equilibrium.
What are network effects? How do they contribute to economies of scale?
What will be an ideal response?