Refer to the graphs below for a competitive market in the short run. What will happen in the long run to industry supply and the equilibrium price P of the product?
A. S will decrease, P will decrease
B. S will increase, P will decrease
C. S will decrease, P will increase
D. S will increase, P will increase
C. S will decrease, P will increase
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Determinants of the price elasticity of supply are:
A. adjustment time, whether the good is a luxury or a necessity. B. availability of inputs, adjustment time. C. flexibility of the production process, whether the good is a luxury or a necessity. D. availability of inputs, whether the good is a luxury or a necessity. AACSB: Reflective Thinking
Which of the following is the best example of physical capital used to produce a textbook?
a. the expertise and writing ability of the author b. the ink used in the printing press c. the printing press d. the property on which the publisher's office is located e. the time spent by editors reviewing the textbook
Milton Friedman argued that the economy is not in long-run equilibrium if the expected inflation rate __________ the actual inflation rate
A) is less than B) is greater than C) equals D) a and b
Frictional unemployment is a sign of a healthy economy because
A. workers become more productive after taking vacations. B. economic growth remains steady. C. workers seek labor where they can provide the most value to their respective employer. D. wages fall, which forces workers to compete.