If market supply increases, equilibrium price will:
A. fall, causing a movement along the demand curve.
B. rise and demand will shift to the left.
C. rise, causing a movement along the demand curve.
D. fall and demand will shift to the right.
Answer: A
Economics
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A monopolistically competitive firm ________ in the long run
A) earns low but positive economic profits B) earns high economic profits C) earns zero economic profits D) incurs losses
Economics
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, if the economy were open to free trade, the domestic quantity supplied would:
A. drop from 815 to 500. B. increase from 250 to 500. C. increase from 815 to 1500. D. drop from 815 to 250.
Economics