When the price level decreases, the resulting _______ in the interest rate will _____ investment.

A university raises annual tuition by 10 percent. No other events have occurred, and the university's revenues have increased. It must be TRUE that

A) the associated change in quantity demanded was smaller than 10 percent. B) the associated change in quantity demanded was equal to 10 percent. C) the associated change in quantity demanded was greater than 10 percent. D) there was no associated change in quantity demanded.

Suppose that a monopoly is earning economic profits in the short run. As a result,

a. no new firms will enter the industry because of barriers to entry b. the monopolist will increase its price and lower its output c. the market supply curve will shift to the right d. profits will fall as new firms enter the market e. the market demand curve will shift to the left