What effect does a compensated price change have on a consumer's well-being?
A. The consumer's well-being increases.
B. The consumer's well-being decreases.
C. The consumer's well-being is unaffected.
D. The effect on the consumer's well-being cannot be determined without knowing the direction of the price change.
C. The consumer's well-being is unaffected.
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A monopolist's demand curve implies that
a. the monopolist is a price taker. b. the monopolist is a price maker. c. it has nothing to do with the amount a monopolist can sell. d. it can be downward sloping or horizontal depending on the price.
?Exhibit 10A-1 Aggregate demand and supply model
Given the shift of the aggregate demand curve from AD1 to AD2 in Exhibit 10A-1, the real GDP and price level (CPI) in long-run equilibrium will be:
A. $8 billion and 150. B. $12 billion and 200. C. $8 billion and 250. D. $8 billion and 200.