Along a perfectly elastic supply curve
a. the quantity supplied is always the same
b. the price elasticity of demand is always the same
c. the price is always the same
d. the cross-price elasticity of demand is always the same
e. the elasticity of supply is different at each point.
C
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Assume that the personal computer industry is perfectly competitive. The fact that the price of personal computers over the last decade has fallen despite increases in demand signifies that the industry is a decreasing-cost industry
Indicate whether the statement is true or false
Economic theory would anticipate that labor market distortions would reduce employment. Why isn't there greater evidence of this in developing countries?
What will be an ideal response?
At any point along the LM curve,
A) the quantity of money demanded equals the quantity of money supplied. B) the economy must be in general equilibrium. C) the nominal interest rate must equal the real interest rate. D) saving must equal investment.
Refer to Figure 12.1. What is the Nash equilibrium?
A. James chooses Up, Theodore chooses Left
B. James chooses Up, Theodore chooses Right
C. James chooses Down, Theodore chooses Left
D. James chooses Down, Theodore chooses Right