Other things the same, an increase in velocity means that
a. transactions per dollar increase so the price level rises.
b. transactions per dollar increase so the price level falls.
c. transactions per dollar decrease so the price level rises.
d. transactions per dollar decrease so the price level falls.
a
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In the above figure, when the quantity equals 400 pretzels
A) consumers are willing to pay $2 for the 400th pretzel. B) producers are willing to supply 400 pretzels for $3. C) producers are willing to supply 400 pretzels for $2. D) the marginal benefit is greater than the marginal cost.
In the 1990s, what reduced the barriers to entry in the local telephone market?
(A) The end of a twenty-year patent on telephone technology. (B) The deregulation of the local telephone industry. (C) The rising popularity of cellular phones. (D) The licensing of new, smaller phone companies.