Figure 10-4



Starting from long-run equilibrium at point F in , at which of the following points would short-run equilibrium occur following a decrease in resource prices?

a.

I

b.

F

c.

G

d.

H

c

Economics

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Last year you purchased 20 CDs at $12 a piece, 10 shirts at $15 each, and 5 sweaters at $30 each (total spending equals $540). This year you buy 18 CDs at $15 each, 10 shirts at $16 each, and 6 sweaters at $36 each (total spending equals $640)

If last year's index was 100, this year's index A) is 119.6. B) is 118.5. C) is 83.6. D) is 30.

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_______ ensure that resources are allocated to where they are most highly valued

a. Communist governments b. Consumers c. Suppliers d. Non-governmental organizations e. Markets

Economics