Suppose some firms exit an industry characterized by monopolistic competition. We would expect the demand curve of a firm already in the industry to
A. shift to the right.
B. shift to the left.
C. become less elastic.
D. remain the same since entering firms serve other customers in the market.
Answer: A
Economics
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A graphic organizer that is especially useful for showing changes over time is a
a. line graph. b. bar graph. c. pie graph. d. circle graph.
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When the price level increases, aggregate planned expenditure ________ and equilibrium real GDP ________. As a result, in the AS-AD model, the aggregate demand curve has a ________ slope
A) increases; decreases; negative B) decreases; decreases; negative C) decreases; increases; negative D) increases; increases; positive E) decreases; decreases; positive
Economics