Answer the following statement(s) true (T) or false (F)
1. An individual supply curve is a graphical representation of the quantity of goods and services that all the individual producers are willing and able to supply at various prices.
2. A shift in the entire supply curve is called a change in quantity supplied.
3. The supply of a good increases if the price of one of its substitutes in production falls.
4. If producers expect a higher price in the future, they will supply less now than they otherwise would have.
1. False
2. False
3. True
4. True
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The long-run average cost (LRAC) curve is based on a group of:
a. short-run average cost (SRAC) curves. b. accounting profit levels. c. competitive firms. d. costs incurred when output is zero.
Assume you have $1,000 in a savings account at the beginning of the year and the price level is equal to 100. If the price level is equal to 92 at the end of the year, the real value of your savings is closest to
A. $1,092. B. $920. C. $1,087. D. $908.