The price of a gallon of gasoline increased from $2.00 to $2.25 while the price of a ride on the city bus increased from 50 cents to 75 cents. The relative price of riding the city bus
A. stayed constant at 4.0.
B. decreased from 4.0 to 3.0.
C. increased from 0.25 to 0.6.
D. stayed constant at 0.25.
Answer: C
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An oligopoly created because of economies of scale is called a
A) natural oligopoly. B) legal oligopoly. C) public oligopoly. D) monopolistic oligopoly. E) scale oligopoly.
In the figure above, the single-price, unregulated monopoly produces
A) less than 19 units per day. B) 20 units per day. C) between 21 and 39 units per day. D) 40 or more units per day.
A drought in the Midwest will raise the price of wheat because of a
A) leftward shift in the supply curve. B) rightward shift in the supply curve. C) leftward shift in the demand curve. D) rightward shift in the demand curve.
Graphically, the trend line for the nominal mortgage rate coincides with the trend line for the real mortgage rate if the rate of inflation is zero
a. True b. False Indicate whether the statement is true or false