If a supplier faces a perfectly horizontal demand curve and sets his price slightly higher than the demand curve itself, he can expect:
A. no change in his total revenues.
B. everyone to begin buying his product.
C. a complete loss of revenues.
D. a new demand curve.
Answer: C
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Today 1 euro can be purchased for $1.10. This is the
A) spot exchange rate. B) forward exchange rate. C) fixed exchange rate. D) financial exchange rate.
Which of the following is an example of government influence on supply?
a) law of supply b) subsides c) marginal costs d) market supply curve
A decrease in supply _____ price and _____ the quantity sold.
Fill in the blank(s) with the appropriate word(s).
If the unemployment rate falls because the number of people not working but searching for work falls, economists would attribute this to the
A. encouraged worker effect. B. fallacy of composition. C. discouraged worker effect. D. none of the above