Assume the market in the graph shown was originally at an equilibrium with demand D and supply S. Suppose Demand shifts and becomes D2. What might have caused such a shift?
A. The good became more popular.
B. People expect the price of this good to drop in the near future.
C. The good became cheaper to produce.
D. Substitutes for this good became less expensive.
A. The good became more popular.
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The Sweezy model of oligopoly reveals that:
A. perfectly competitive prices can arise in markets with only a few firms. B. capacity constraints are not important in determining market performance. C. changes in marginal cost may not affect prices. D. All of the statements associated with this question are correct.
Which of the following would be expected to decrease the demand for money in the U.S.?
A. The economy enters a boom period. B. Grocery stores begin to accept credit cards in payment. C. Political instability increases dramatically in developing nations. D. Households fear increasing computer glitches will severely limit their ability to use ATMs.
When the government finances a shovel-ready project through taxes or borrowing, this will result in
What will be an ideal response?
If orders exist in large volume, then the market has
A) depth. B) breadth. C) resiliency. D) None of the above.