Which of the following has most likely caused the shift to S2?
a. a decrease in input prices
b. an increase in prices of production substitutes
c. an expectation of a higher future price
d. a decrease in number of sellers
a. a decrease in input prices
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A decrease in interest rates will
A) shift the investment function relating planned investment to the interest rate to the left. B) be a movement along the investment function relating planned investment to the interest rate. C) shift the investment function relating planned investment to the interest rate to the right. D) have no impact on the investment function relating planned investment to the interest rate.
The monopolist faces:
a. a perfectly inelastic demand curve. b. a perfectly elastic demand curve. c. the entire market demand curve. d. all of these.
Which of the following is not a barrier to entry in an industry?
A. Profit maximization B. Strategic pricing C. Government licensing D. Economies of scale
When economists want to obtain a measure of the responsiveness of quantity demanded to changes in price, they use
A. the slope of the demand curve. B. the unit change in quantity demanded. C. the price elasticity of demand. D. the cross-price elasticity of demand.