LRE. Suppose there is an increase in SRAS. As wages eventually react to the new situation, what will happen? Wages will _____ and SRAS will shift ___
a. increase; right
b. increase; left
c. decrease; right
d. decrease left
Answer: b. increase; left
Economics
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If a price floor is not binding, then
a. there will be a surplus in the market. b. there will be a shortage in the market. c. there will be no effect on the market price or quantity sold. d. the market will be less efficient than it would be without the price floor.
Economics
Which of the following is NOT a feature of monopolistic competition?
A) significant numbers of sellers in a highly competitive market B) differentiated products C) sales promotion and advertising D) inability of firms to enter or exit the market
Economics