Figure 10-9
Figure 10-9 shows supply and demand conditions in a perfectly competitive industry and for a firm in that industry. Assume the industry initially has supply curve S1 and demand curve D1. If demand shifts to D2, then in the short run price will
a.
rise to A.
b.
rise to some level between A and B.
c.
remain at B.
d.
fall to C.
a
You might also like to view...
Strategic dependence is found in
A) monopoly markets. B) oligopolistic markets. C) monopolistic competitive markets. D) perfect competitive markets.
To test joint linear hypotheses in the multiple regression model, you need to
A) compare the sums of squared residuals from the restricted and unrestricted model. B) use the heteroskedasticity-robust F-statistic. C) use several t-statistics and perform tests using the standard normal distribution. D) compare the adjusted R2 for the model which imposes the restrictions, and the unrestricted model.