The kinked demand curve is composed of two segments of two demand curves that intersect. The two segments that make up the kinked demand curves are
a. both related to industry demand
b. derived by subtracting the firm's demand curve from the market demand curve and adding it to the industry demand curve
c. derived from the firm demand curve and the industry demand curve
d. the least elastic segment above price and the more elastic segment below price
e. the more elastic segment above price and the least elastic segment below price
E
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An increase in the number of producers of gruel ________ the supply of gruel and shifts the supply curve of gruel ________
A) increases; rightward B) increases; leftward C) decreases; rightward D) decreases; leftward
If oranges sell for $100 per crate in the United States and 4000 pesos per crate in Mexico, the law of one price indicates that you should be able to exchange $1 for
A) 0.025 peso. B) 4 pesos. C) 40 pesos. D) 400 pesos.