When a monopolistically competitive firm lowers its price, one good thing happens to the firm. What is this "one good thing" called?
A) the income effect B) the price effect
C) the substitution effect D) the output effect
D
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Aggregate demand and aggregate supply analysis suggest that, in the short run, an expansionary monetary will result in
a) a shift in the aggregate demand curve to the left b) a shift in the aggregate supply curve to the left c) an increase in real GDP without much inflation when the economy is on the horizontal portion of the aggregate supply curve d) an increase in real GDP with high inflation when the economy is on the horizontal portion of the aggregate supply curve e) an increase in real GDP and no inflation when the economy is on the verticall portion of the aggregate supply curve
The unemployment rate is an important economic statistic that can tell us about the health of the economy. If the unemployment rate turns out to be high or higher than anticipated, we would expect
A) that jobs are less difficult to find. B) it is more likely that an incumbent president will be re-elected. C) that investors will be more optimistic about the economy. D) that stock prices are more likely to fall.