If a pizza seller reduces its prices, the price cut will
A) have no effect on the demand for competing sellers' pizza.
B) increase the seller's gross revenue.
C) increase the seller's net revenue.
D) shift the seller's demand curve if competing pizza sellers match the price decreases.
D
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Within the AD/AS model, an increase in capital formation that permits the economy to achieve a larger output will
a. increase long-run aggregate supply. b. increase short-run aggregate supply, but long-run aggregate supply will be unaffected. c. increase aggregate demand. d. decrease aggregate demand.
A street vendor sells a replica of a pair of designer shoes to a young woman who believes the shoes are authentic. The street vendor is engaging in
a. both moral hazard and adverse selection. b. neither moral hazard nor adverse selection. c. moral hazard, but not adverse selection. d. adverse selection, but not moral hazard.