If demand increases and supply decreases, what is the effect on equilibrium price and equilibrium quantity?
A) The price falls and the quantity might increase, decrease, or remain the same.
B) The price rises and the quantity might increase, decrease or remain the same.
C) The quantity decreases and the price might rise, fall, or remain the same.
D) The quantity increases and the price might rise, fall, or remain the same.
B
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Dr. Khan starts his own dental practice after quitting his $150,000 job at The Mall Dental Clinic. His revenues for the first year are $500,000
He paid $90,000 in rent for the dental office, $60,000 for his office manager's salary, $24,000 for the dental hygienist, $150,000 for insurance, and $6,000 for other miscellaneous costs. The normal profit from running his business is $20,000. Which of the following statements is true? A) His accounting profit is $350,000. B) His economic profit is $150,000. C) His economic profit is zero. D) His accounting profit is zero. E) None of the above answers is correct.
An economically backward nation has the best chance of enjoying relatively high rates of economic growth if it
A) turns toward central economic planning. B) adopts advanced technologies. C) raises its minimum wages and government pension programs. D) limits imports as much as possible.