Inflation target refers to the commitment of central bankers to keep inflation below a certain rate for the next year or two

Refer to Figure 3-4. If the price is $15

A) there would be a shortage of 400 units. B) there would be a surplus of 300 units. C) there would be a surplus of 400 units. D) there would be a shortage of 300 units.

In an industry where firms experience internal scale economies, the long-run cost of production will depend on

A) the size of the market. B) the size of the labor force. C) whether the country engages in intra-industry trade. D) individual firms' fixed costs. E) whether the country engages in inter-industry trade.