When output increases from Q1 and the price level decreases from P1, this change will:
Refer to the graph above.
A. Be caused by a shift in the aggregate supply curve from AS1 to AS2
B. Be caused by a shift in the aggregate supply curve from AS1 to AS3
C. Result in a movement along the aggregate demand curve from e1 to e2
D. Result in a movement along the aggregate demand curve from e3 to e1
B. Be caused by a shift in the aggregate supply curve from AS1 to AS3
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In many markets for personal services (such as shoe repair or lawn care) with low start-up costs,
a. production exhibits constant returns to scale b. economies of scale are exhausted rapidly c. economies of scale are exhausted slowly d. economies of scale are never exhausted e. there are only short-run costs, no long-run costs
If pizza used to be produced in a perfectly competitive market, and now the pizza market has become a monopoly, we can expect:
A. less pizza to be sold at a higher price. B. more pizza to be sold at a higher price. C. less pizza to be sold at a lower price. D. more pizza to be sold at a lower price.