The fourth step of the four step process is to
a. identify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium price and quantity.
b. decide whether the economic change being analyzed affects demand or supply.
c. draw a demand and supply model before the economic change took place.
d. decide whether the effect on demand or supply causes the curve to shift to the right or to the left, and sketch the new demand or supply curve on the diagram.
a. identify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium price and quantity.
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Christy's Haircuts, the sole supplier of haircuts in a small town, faces the demand schedule shown in the table above. What is Christy's marginal revenue from the 25th haircut?
A) zero B) $5.00 C) $17.50 D) $50.00
If the price index is 108.4 in period 1 and 118 in period 2, the inflation rate from period 1 to period 2 would be _____
a. 10 percent b. 8.9 percent c. 10.8 percent d. 4.2 percent
The long-run aggregate supply curve shifts to the left if there is a decrease in immigration
a. True b. False Indicate whether the statement is true or false
Which of the following best reflects the ability-to-pay philosophy of taxation?
A. An excise tax on coffee B. An excise tax on gasoline C. A progressive income tax D. A tax on residential property