If the supply of product X is perfectly elastic, an increase in the demand for it will increase:
A. equilibrium quantity but reduce equilibrium price.
B. equilibrium quantity, but equilibrium price will be unchanged.
C. equilibrium price but reduce equilibrium quantity.
D. equilibrium price, but equilibrium quantity will be unchanged.
Answer: B
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For a perfectly competitive firm, profit is maximized at the output level where i. total revenue exceeds total cost by the largest amount. ii. marginal revenue equals marginal cost. iii. price equals marginal cost
A) i only B) ii only C) ii and iii D) i and ii E) i, ii, and iii
Your loss from an increase in interest rates is ________, and your gain from a decrease in interest rates is ________, if you hold a two-year bond compared to holding a one-year bond
A) greater; greater B) greater; less C) less; greater D) less; less