Under the kinked demand curve model, a small increase in marginal cost will lead to
A) an increase in output level and a decrease in price.
B) a decrease in output level and an increase in price.
C) a decrease in output level and no change in price.
D) neither a change in output level nor a change in price.
D
Economics
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If the required reserve ratio is 20 percent, the simple deposit multiplier is
A) 5.0. B) 2.5. C) 4.0. D) 10.0.
Economics
The above figure shows a graph of the market for pizzas in a large town. What are the equilibrium price and quantity?
A) p = 8, Q = 60 B) p = 7, Q = 40 C) p = 7, Q = 70 D) p = 10, Q = 40
Economics