Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:

Which of the following observations is not true of a budget line?

a. It indicates what choices are available to the consumer. b. It is a curve of constant expenditure. c. Its slope reports the market terms on which the consumer can trade one good for another. d. It helps examine the consumer's preferences.

Use the following table to answer the question below. Price per UnitQuantity Demanded per YearQuantity Supplied per Year$52,0000101,800300151,600600201,400900251,2001,200301,0001,500There will be a shortage whenever the price is

A. higher than $25. B. equals $25. C. higher than $30. D. lower than $25.