If the demand increases in a perfectly competitive market, what will likely occur?
A. Firms will temporarily make a profit due to a higher price.
B. Firms will enter the market in hopes of capturing some profits.
C. The short-run supply curve will shift to the right, causing price to eventually fall.
D. All of these are true.
D. All of these are true.
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The labels for the axes of the aggregate demand graph should be ________.
A. quantity of a product on the vertical axis and the price of a product on the horizontal axis B. real domestic output on the vertical axis and the price level on the horizontal axis C. real domestic output on the horizontal axis and the price level on the vertical axis D. price of a product on the vertical axis and quantity of a product on the horizontal axis
When voluntary exchange takes place, both parties gain from the exchange
Indicate whether the statement is true or false
For a construction company that builds houses, which of the following costs would be a fixed cost?
a. the $50,000 per year salary paid to a construction foreman b. the $30,000 per year salary paid to the company's bookkeeper c. the $10,000 per year premium paid to an insurance company d. All of the above are correct.
Suppose that a new study is released stating that consumption of orange juice (a substitute for apple juice) reduces the risk of cancer, and a major freeze destroys half of the country's apple crop
What happens to the price and quantity of apple? juice?