In the long run, holding all else constant, inflation requires a decrease in the money supply relative to the output of goods and services—not enough money chasing too many goods

Ted went to the market to buy Good X. He was willing to pay up to $2.50 per unit of the good

However, he expected some units of the good to be defective. Therefore, when the seller asked for a price of $2.30 per unit, he refused to pay more than $2 for each unit. If the seller knows which units of the good are defective, what is most likely to happen in this case?

The figure above shows the market for low-skilled labor in Midland city. The government sets a minimum wage at $6 per hour. With the minimum wage law enacted, the potential loss from job search in Midland city is

A) $60 million. B) $120 million. C) $40 million. D) zero.