Suppose the demand for rental apartments decreased substantially. We would expect to observe
A. no change in rent and a sharp reduction in quantity supplied in the short run, and an even larger decrease in quantity supplied in the long run.
B. a small decrease in quantity supplied and significantly lower rents in the short run, and quantity supplied to decrease much more in the long run.
C. a large decrease in quantity supplied in the short run and the long run, but much larger reductions in rent in the long run.
D. a large decrease in quantity supplied in the short run, followed by a counter-reaction and an increase in quantity supplied in the long run.
Answer: B
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Indicate whether the statement is true or false
Gross private domestic investment does not include:
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Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions. B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions. C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions. D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.