Last year there were 6 pizza shops in town. This year there are only 4. Other things being equal, the decrease in the number of suppliers will
A) cause the market supply curve to shift to the right.
B) increase the market demand for pizza.
C) cause a decrease in the quantity supplied at each price.
D) have no impact on market supply as long as the demand for pizza remains strong.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. To make the most accurate predictions about a stock's future price, one must look at both the past pattern of prices and the current price of the stock. 2. In an efficient market, the current price reflects all available information. 3. The past performance of a stock is the best guide to future performance. 4. A speculative bubble is characterized by systematic undervaluing of stocks. 5. Efficient financial markets are called so because they produce an amount of financial products that maximizes total surplus in the financial industry.
The economy is at full employment. If aggregate demand increases,
A) an inflationary gap is created and the AS curve shifts leftward as the money wage rate rises. B) an inflationary gap is created and the AD curve shifts leftward. C) an inflationary gap is created and potential GDP increases to close the ga
A change in the price of a good causes
A) an increase in supply. B) a decrease in supply. C) an increase in demand and a decrease in supply. D) a change in quantity supplied.
An improvement in the technology of production for a specific good is expected to cause:
a. Higher prices and decreased quantity sold b. Higher prices and increased quantity sold c. Lower prices and decreased quantity sold d. Lower prices and increased quantity sold