Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:

The long-run equilibrium of a monopolistically competitive firm is characterized by

A) a tangency of the average total cost curve with the firm's demand curve. B) price equal to marginal cost. C) production at the minimum point of the firm's average total cost curve. D) production at the minimum point of the firm's average variable cost curve.

Which of the following is an example of a market demand curve?

a. A graph shows the sharp increase in the purchase of cell phones last year in France. b. A graph shows how Li’s demand for tea decreases as the price increases. c. A table shows the steady increase in the price of bananas over a five-year period in the United States. d. A graph shows how the demand for HD TVs in Hawaii is affected by price changes.