Refer to Figure 36.3 for the dollar-Swiss franc foreign exchange market. Which of the following is true?
A. An increase in supply from S1 to S2 could be caused by an increase in Swiss demand for U.S. corn.
B. An increase in supply from S1 to S2 could be caused by an increase in the U.S. demand for Swiss chocolate.
C. The Swiss franc appreciates in value compared to the U.S. dollar when supply decreases from S2 to S1.
D. The U.S. dollar appreciates in value compared to the franc when supply increases from S1 to S2.
Answer: B
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Researchers have found a hybrid of corn that is cheaper to grow. This technological breakthrough
A) increases the demand for corn. B) decreases the supply of corn. C) increases the supply of corn. D) Both answers A and C are correct. E) Both answers A and B are correct.
Explain why a monopoly or a perfectly competitive firm does not consider a rival firm's behavior, but an oligopoly and a monopolistically competitive firm do
What will be an ideal response?
Refer to the graph shown. If the price level is P0, then:
A. both input prices and output will fall in the long run. B. both input prices and output will rise in the long run. C. input prices will fall and output will rise in the long run. D. input prices will rise and output will fall in the long run.
Market clearing price
A) refers to a movement along the demand curve. B) refers to a supply curve. C) exists at a the point at which quantity demanded equals quantity supplied. D) refers to a surplus.