If consumer incomes increase, the demand for product X:
A. will necessarily remain unchanged.
B. may shift either to the right or left.
C. will necessarily shift to the right.
D. will necessarily shift to the left.
Answer: B
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If both firms in a duopoly cheat on a collusive agreement, the price ________ and both firms are ________
A) falls; better off B) rises; worse off C) falls; worse off D) rises; better off
An options contract
A) confers the rights to buy or sell an underlying asset at a predetermined price by a predetermined time. B) is another name for a futures contract. C) may be written for debt instruments, but not equities. D) may be written for equities, but not for debt instruments.
The entry of firms into a perfectly competitive industry causes the supply curve to
a. increase its slope. b. decrease its slope. c. move toward the right. d. move toward the left.
A producer surplus is a ______.
a. net loss b. net benefit c. form of taxation d. form of subsidy