Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C
B. Falling; A; C
C. Falling; A; B
D. Rising; A; C
Answer: D
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Patents turn new ideas into
a. public goods, and increase the incentive to engage in research. b. public goods, but decrease the incentive to engage in research. c. private goods, and increase the incentive to engage in research. d. private goods, but decrease the incentive to engage in research.
What term is defined as the change in the amount consumers will buy because they can buy a different product instead?
a. inferior goods b. normal goods c. income effect d. substitution effect
If demand decreases and supply increases, which of the following is correct? Question 10 options:
A. The equilibrium price falls but the impact on the equilibrium quantity is ambiguous. B. The equilibrium price rises but the impact on the equilibrium quantity is ambiguous. C. The equilibrium quantity increases but the impact on the equilibrium price is ambiguous. D. The equilibrium quantity decreases but the impact on the equilibrium price is ambiguous. E. The equilibrium price falls and the equilibrium quantity decreases.
Suppose price increases from $9.00 to $11.00. Using the mid-point formula, the percentage change in price is:
A. -20% B. 2% C. 25% D. 20%