Assume that a perfectly competitive market is in long-run equilibrium. Suppose as a result of a health hazard associated with the industry's product, demand decreases drastically. What is the immediate result of this event?
A) The typical firm's average total cost curve shifts downward.
B) The typical firm's marginal cost curve shifts to the left.
C) The market price falls and the typical firm suffers an economic loss.
D) The market supply increases to offset the fall in demand.
C
Economics
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If the variable on the vertical axis increases by 20 and the variable on the horizontal axis increases by 5, the slope of the line is
A) 0.25. B) 4. C) 15. D) 100.
Economics
In the figure above, point E could be obtained if
A) resources were shifted from education to health care. B) resources were used more efficiently. C) society's resources increased. D) resources were shifted from health care to education.
Economics