A decrease in the number of competitors in a monopolistically competitive market causes an increase in the price elasticity of demand for the output of each of the remaining firms in the market
Indicate whether the statement is true or false
FALSE
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If consumers switch away from eating margarine at the same time that the number of margarine suppliers increases, then:
a. these two effects cancel each other out and there is no change in the margarine market equilibrium. b. the demand curve shifts left and the supply curve shifts right. c. there is a margarine price increase. d. there is an excess demand for margarine. e. the equilibrium quantity of margarine must increase.
Why are time series data unlikely to give an accurate estimate of demand?
A sum of money received at a future date is worth less than the same sum of money received today. Why? Explain this with an example
Adam Smith stated, "The man of system is apt to be very wise in his own conceit. He seems to imagine that he can arrange the different members of a great society with as much ease as the hand arranges the different pieces upon a chess-board.". Which is true of this statement?
a. Keynes would tend to agree with the statement; Heyek would disagree with it. b. Keynes would tend to disagree with the statement; Hayek would agree with it. c. As the rap video indicates, both Keynes and Hayek strongly agree with this statement. d. As the rap video indicates, both Keynes and Hayek strongly disagree with this statement.