The marginal propensity to consume is:
a. the change in income divided by the change in consumption.
b. consumption spending divided by income.
c. income divided by consumption spending.
d. the change in consumption divided by the change in income.
e. the change in consumption divided by income.
d
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How does the long-run industry supply curve compare to the short-run industry supply curve?
a. The long-run curve is always flatter than the short-run curve. b. The long-run curve is always steeper than the short-run curve. c. The long-run curve is based on the assumption that firms can control the price they charge, whereas the short-run curve assumes that the market sets the price. d. The short-run curve is based on the assumption that firms can control the price they charge, whereas the long-run curve assumes that the market sets the price.
If a monopoly discovers that the demand for its output has become more elastic at the original output level, then it will respond by
A) producing more and setting a higher price. B) setting a lower price. C) setting a higher price. D) producing more while leaving price unchanged.