The substitution effect and the output effect
A. always work in the same direction.
B. sometimes work in the same direction.
C. always work in the opposite direction.
D. sometimes work in the opposite direction.
C. always work in the opposite direction.
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The figure above shows Bill's Hotdogs, a monopolistically competitive firm. If other firms enter the market and have hot dogs that are very close substitutes for Bill's Hotdogs, then the demand curve for Bill's Hotdogs will ________
A) shift leftward and become more elastic B) shift rightward and become more elastic C) shift rightward and be parallel to the original demand curve D) shift leftward and be parallel to the original demand curve
The delivery of first-class mail by the U.S. Postal Service is an example of
A) a monopoly. B) an oligopoly because a few other firms provide delivery of letters and packages. C) perfect competition because consumers have access to other methods of written communication; for example, email and text messaging. D) monopolistic competition, because mail delivery is a differentiated product provided by many firms.
If a change in technology improves the marginal productivity of capital, the
a. supply of capital will increase b. supply of capital will decrease c. demand for loanable funds will increase d. demand for loanable funds will decrease e. supply of loanable funds will increase
At which of the following exchange rates would the quantity of British pounds demanded be the highest?
a. $5.00 per pound. b. $2.50 per pound c. $3.00 per pound. d. $1.50 per pound. e. $2.00 per pound.