Suppose the equilibrium price in a perfectly competitive industry is $15 and a firm in the industry charges $21. Which of the following will happen?
A) The firm's profits will increase.
B) The firm's revenue will increase.
C) The firm will not sell any output.
D) The firm will sell more output than its competitors.
Answer: C
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The short-run aggregate supply curve has a(n) ________ slope because as prices of ________ rise, prices of ________ rise more slowly
A) positive; final goods and services; inputs B) infinite; final goods and services; inputs C) positive; inputs; final goods and services D) infinite; inputs; final goods and services
Which of these pairs of concepts can be positively, as well as negatively, related?
A. The income of consumers and the demand for a product B. The price of a product and the quantity of that product demanded C. The price of a product and the demand for a complementary product D. The cost of resources required to make a product and its supply