Refer to the graph. A decrease in fixed costs is shown by:
A. a move along short-run average total cost curve ATC 2 from point e to point f.
B. a move along short-run average total cost curve ATC 1 from point a to point b.
C. the shift of the short-run average total cost curve from ATC 1 to ATC 2 .
D. the shift of the short-run average total cost curve from ATC 2 to ATC 1
D. the shift of the short-run average total cost curve from ATC 2 to ATC 1
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If the money supply in an economy equals $1,000 and nominal GDP equals $3,000 . then according to the equation of exchange, velocity of money: a. equals 1/3
b. equals 3. c. equals 3 million. d. cannot be determined since we do not know anything about prices. e. cannot be determined since we do not know anything about real GDP.
The market-clearing price is:
a. the price at which the market is in equilibrium. b. the price at which mutually beneficial trade take place. c. the price at which sellers earn the maximum profit. d. the price at which consumer surplus is zero.