What happens to equilibrium quantity when simultaneously demand increases and supply decreases?
A. Equilibrium quantity will increase.
B. Equilibrium quantity will decrease.
C. Equilibrium quantity will remain the same.
D. Equilibrium quantity may increase, decrease, or remain the same depending on the magnitude of the shifts in demand and supply.
D. Equilibrium quantity may increase, decrease, or remain the same depending on the magnitude of the shifts in demand and supply.
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Which of the following is NOT correct about patents?
A) Patents encourage invention of new products. B) Patents stimulate innovation. C) A patent is a barrier to entry. D) Patents enable a firm to be a permanent monopoly. E) Patents are granted to the inventor of a product or service.
The figure shows the market for books before and after a sales tax is introduced. The tax on books is ________ a book, buyers pay ________ of tax per book, and the government's tax revenue is ________ a week
A) $1.20; $0.80; $128 B) $0.80; $1.20; $12 C) $0.40; $0.40; $4 D) $1.20; $0.80; $12
The only factor that can cause movement along the aggregate supply curve is the
a. labor force. b. capital stock. c. availability of resources. d. price level. e. All of the above are correct.
FarAwayDrive Inc. has recently increased the price of its golf balls from $40 to $6. In response to this increase in price, sales decreased from 2,200 to 1,800 units. If no other information concerning the demand is available, which of the following is true about the sensitivity of demand (using the ARC or midpoints formula) for FarAwayDrive's golf balls?
A. The ARC-elasticity (midpoints formula) of demand is 4/11 or .364. B. The ARC-elasticity (midpoints formula) of demand is 2/3 or .667. C. The ARC-elasticity (midpoints formula) of demand is 2.0. D. The ARC-elasticity (midpoints formula) of demand is ½ or .50.