Under a gold standard, if the market price of gold is below the official price of gold (set by the monetary authority), people will be more likely to sell gold __________________, which will cause the money supply to _______________ and the price level.to _______________

In the above figure, if the market price is $8, the firm

A) continues to produce but at an economic loss. B) continues to produce but at an economic profit. C) shuts down operations. D) produces 10 units.

For a cruise liner deciding how to price its rooms, if the cost of overpricing is lower than the cost of underpricing, then the management of the cruise liner should

a. Price lower than what they expect would fill capacity b. Price higher than what they expect would fill capacity c. Price such that they would expect to just fill capacity d. None of the above