If there is an increase in market demand in a perfectly competitive market, then in the short run prices will
a. rise.
b. remain unchanged at the minimum of average total cost.
c. fall.
d. remain unchanged at the minimum of marginal cost.
a
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Over the most recent movement from cyclical trough to peak, 1991:Q1 to 2001:Q1, gross private domestic investment ________ approximately ________ percent
A) rose, 49 B) rose, 73 C) rose, 6 D) fell, 68 E) fell, 20
Suppose that consumers become pessimistic about the future health of the economy. What will happen to aggregate demand and to output? What might the president and Congress have to do to keep output stable?
A recent study found that the price elasticity of demand for apples is -0.4. This year's early freeze in major apple growing regions has led to a 6% decrease in the apple production (supply) compared to last year. What is the implied change in price expected this year for apples (and assume no apple exports or changes in stocks)?
a. Decrease by 3% b. Decrease by 15% c. Decrease by 24% d. Increase by 15% e. Increase by 24%
Refer to Table 8.2. If Sherry produces five pairs of earrings, her total costs are A) $320. B) $360. C) $370. D) $400.