Firms that price discriminate cannot capture consumer surplus
Indicate whether the statement is true or false
False
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Crowding out makes fiscal policy more complicated to formulate because it can ________ the theoretical magnitude of the_______.
A. increase; multiplier effect B. reduce; multiplier effect C. reduce; interest rate D. increase; interest rate
Refer to the table above. Assume that the market for notebooks is in equilibrium. Which of the following is likely to happen if a few sellers of notebooks decide to exit the market, everything else remaining unchanged?
A) Both the equilibrium price and quantity of notebooks remain unchanged. B) Both the equilibrium price and quantity of notebooks decrease. C) The equilibrium price of notebooks increases, but the equilibrium quantity decreases. D) The equilibrium price of notebooks decreases, but the equilibrium quantity increases.
When the demand curve shifts rightward and the supply curve shifts leftward, then the equilibrium price ________ and the equilibrium quantity ________
A) rises; decreases B) falls; increases C) rises; probably changes but the direction of the change cannot be determined D) probably changes but the direction of the change cannot be determined; increases
A change in one input price will cause the slope of the firm’s budget line to change.
Answer the following statement true (T) or false (F)