The demand curve for the product of a perfectly competitive firm's demand curve indicates that if the firm
A) lowers its price, it can sell more.
B) accepts the market-set price, the number of units the firm can sell is limited.
C) raises its price, sales will fall to zero.
D) changes its price, the quantity demanded will change in the opposite direction.
C
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If no fiscal policy changes are made, suppose the current aggregate demand curve will increase horizontally by $1,000 billion and cause inflation. If the marginal propensity to consume is 0.75, federal policymakers could follow Keynesian economics and restrain inflation by decreasing:
a. government spending by $250 billion. b. taxes by $100 billion. c. taxes by $1,000 billion. d. government spending by $1,000 billion.
Necessary conditions for price discrimination include: a. identical tastes among buyers
b. differences in willingness to pay among customers. c. easy resale. d. both (b) and (c)