Refer to the figure at the right. Suppose point A is the original equilibrium. If there is an increase in the money supply, the new short-run equilibrium is giving by point

All else equal, if there are diminishing returns, then if a country raised its capital by 100 units last year and by 100 units this year,

a. the increase in output was greater for this year than last year. b. the increase in output was greater last year than this year. c. the increase in output is the same in both years. d. None of the above is necessarily correct.

Consider firms operating in an industry where the own price elasticity of demand is infinite; that is,  EQ,P = -?. Use this information to determine the type of industry in which these firms operate and the optimal advertising-to-sales ratio.

A. Monopolistic industry and 0 B. Perfectly competitive industry and 0 C. Perfectly competitive industry and ? D. Monopolistically competitive industry and ?