"In the past five years the average price of our Chevrolets has risen about 6 percent a year, and each year we have sold 10 percent more cars than the previous year." How can this car dealer sell more cars as the price of the cars increases?
What will be an ideal response?
All else constant, an increase in demand will lead to both an increase in price and an increase in the quantity of cars sold. Alternatively, so long as demand increases by more than supply decreases, price and quantity exchanged will both increase.
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The net-export effect of contractionary monetary policy is
A) the appreciation of the value of the dollar and a resulting decrease of U.S. net exports. B) the depreciation of the value of the dollar and a resulting increase of U.S. net exports. C) the appreciation of the value of the dollar and a resulting increase of U.S. net exports. D) the depreciation of the value of the dollar and a resulting decrease of U.S. net exports.
Refer to the information provided in Figure 10.1 below to answer the question(s) that follow. 
Figure 10.1 Refer to Figure 10.1. This firm is currently hiring 16 workers and paying a wage of $10. This firm should
A. reduce employment to 15 workers to increase profits. B. reduce employment to 14 workers to increase profits. C. increase employment to 17 workers to increase profits. D. do nothing because it is maximizing profits.