Which of the following is a condition for maximum profit?

A decrease in the expected future price of cars

A) increases the current quantity demanded of cars, that is, there is a movement downward along the demand curve for cars. B) increases the current demand for cars, that is, there is a rightward shift of the demand curve for cars. C) decreases the current quantity demanded of cars, that is, there is a movement upward along the demand curve for cars. D) decreases the current demand for cars, that is, there is a leftward shift of the demand curve for cars.

A small open economy is an economy

A) in which both imports and exports are less than 5% of GDP. B) whose firms and consumers are individually, but not collectively price takers. C) whose firms and consumers are collectively, but not individually price takers. D) whose firms and consumers are individually and collectively price takers.