If a seller in a competitive market chooses to charge more than the going price, then
a. the sellers' profits must increase.
b. the owners of the raw materials used in production would raise the prices for the raw materials.
c. other sellers would also raise their prices.
d. buyers will make purchases from other sellers.
d
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What happens when there is a sudden increment or decline in the supply of a specific product which affects equilibrium?
a. Capital flight b. Economic equilibrium c. Elasticity of supply d. Supply shock
Refer to Figure 12.5. If exchange rates are floating, the Fed decreasing its target inflation rate would best be represented by a movement from ________ in panel (a) and a corresponding movement from ________ in panel (b)
A) point A to point B; point X to point Y B) point C to point A; point X to point Y C) point D to point C; point Y to point X D) point B to point D; point Y to point X