In the long run,
a. competitive firms' profits are zero.
b. competitive firms' variable costs are zero.
c. competitive firms' ATC curves shift upward or downward to ensure that all demand is satisfied.
d. the number of firms in the market is fixed.
a
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If a 20 percent decrease in the price of a good leads to a 15 percent increase in the quantity demanded, then demand is ________ and total revenue will ________ as a result of the fall in price
A) elastic; increase B) elastic; decrease C) inelastic; increase D) inelastic; decrease
Federal government expenditures in the United States comprise about _____ of total government expenditures
a. 90 percent b. 75 percent c. 60 percent d. 45 percent
A decrease in supply will have what effect on equilibrium price and quantity?
a. Price will increase; quantity will decrease. b. Price will decrease; quantity will increase. c. Both price and quantity will increase. d. Both price and quantity will decrease.
If the central bank of a country increases the interest rate, it will: a. weaken the exchange rate
b. decrease the demand for investment spending. c. increase the price level. d. increase the net exports of that country.