Assume that the demand for film cameras decreases in a competitive market. What will most likely happen to the equilibrium price and quantity of film cameras?
a. Price will decrease; quantity will increase
b. Price will decrease; quantity will decrease
c. Price will increase; quantity will increase
d. Price will increase; quantity will decrease
Answer: b. Price will decrease; quantity will decrease
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How do firms raise external funds through indirect finance?
What will be an ideal response?
The price elasticity of demand increases with the length of the period to which the demand curve pertains because:
A. consumers' incomes will increase. B. consumers will be better able to find substitutes. C. the demand curve will shift outward. D. all prices will increase over time.
The value of an item expressed in today's dollars is known as
A. the real value. B. inflation. C. deflation. D. the nominal value.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.