Suppose Good X is a substitute for Good Y. Everything else remaining unchanged, an increase in the price of Good Y will lead to
A. a decrease in demand for Good X.
B. an increase in demand for Good X.
C. a decrease in the price of Good X.
D. an increase in demand for Good Y.
Answer: B
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A competitive market is one in which a number of buyers and sellers are offering similar products, and no single buyer or seller can influence the market price
a. True b. False Indicate whether the statement is true or false
What impact did the change in housing prices during 2002 to 2005 have within the framework of the AD/AS model?
a. Declining housing prices reduced aggregate demand shifting AD leftward. b. Rising housing prices increased aggregate demand shifting AD rightward. c. Rising housing prices led to increased construction shifting LRAS leftward. d. Declining housing prices caused SRAS to shift leftward.
A business produced $10 million of goods in 2007 but sold only $9 million. Is the $1 million increase in inventory counted as part of the 2007 gross domestic product?
What will be an ideal response?
Newcomers will be enticed to enter an oligopolistic market when ______.
a. entry is easy and there is zero long-run economic profit b. entry is easy and there are excess profits c. economies of large-scale production exist d. a cartel agreement is in place that benefits social welfare