A perfectly competitive industry is in long-run equilibrium. If demand for the product decreases, we can expect:
A. firms to enter the market.
B. firms to exit the market.
C. no change in the number of firms in the market.
D. There is not enough information to tell what will happen to the number of firms in the market.
Answer: B
Economics
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The quantity theory of money implies that the price level will be stable (no inflation or deflation) when the growth rate of the money supply equals
A) 0. B) the growth rate of the price level. C) the growth rate of the velocity of money. D) the growth rate of real GDP.
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What is the ratio of a pound of yellow squash @ $ .40 a pound and a pound of butternut squash @ $1.20 a pound?
A. 1 to 4 B. 1 to 3 C. 1 to 2 D. 1 to 1
Economics