If OPEC increases its price of oil, and still the demand for oil decreases by a very small amount, we can conclude that the demand for oil is

Ricardian Equivalence theory is based on the view that ________

A) the impact of a tax cut is felt primarily on domestic consumption spending B) households tend to take future events into account when engaging in economic decision-making C) the price of a commodity is negatively related to the quantity of that good demanded D) a trade-off exists between the use of monetary and fiscal policy in influencing the level of income

If market demand increases, a perfectly competitive firm will find:

a. its cost curves shifting up. b. its profit-maximizing output level increasing. c. its average revenue curve shifting down. d. its marginal cost falling. e. its profits decreasing.