All else being equal, if the price of a product decreases, we would expect
A. quantity supplied to increase.
B. demand to increase.
C. quantity supplied to decrease.
D. supply to decrease.
Answer: C
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Social Security payments are examples of
A) transfer payments. B) nondurable goods. C) durable goods. D) services.
If real GDP grows by 3% in 2014, 3.2% in 2015, and 2.5% in 2016, what is the average annual growth rate of real GDP?
A) 2.6% B) 2.9% C) 3.1% D) 4.2%
Zinc Communications developed a new type of cellular telephone that has a three-dimensional (3-D) screen. The company holds a patent on this technology, so they are the only seller of the 3-D phone when it is introduced
Over time, other companies introduce phones that are similar but not identical (i.e., they do not violate the patent held by Zinc). What happens to the demand for 3-D phones facing Zinc and to the profit-maximizing price for the 3-D phone as these similar products enter the market? A) Demand becomes less elastic, price increases B) Demand becomes less elastic, price declines C) Demand becomes more elastic, price increases D) Demand becomes more elastic, price declines
For which of the following types of firm does the average revenue curve coincide with the marginal revenue curve?
a. A monopolist b. An oligopoly firm c. A monopolistically competitive firm d. A perfectly competitive firm e. A monopsonist