Figure 17-2
Given the situation in graph (1) in Figure 17-2, what movement would be expected in graph (2) from the economy's self-correcting mechanism?
a.
A to B
b.
A to D
c.
C to E
d.
D to C
c
You might also like to view...
Suppose water rates in Podunk rise by 100%. The water consumption in Podunk will tend to
A) remain unchanged, because water is a necessity of life. B) decrease substantially overnight. C) decrease more substantially over time, as residents discover substitutes for water. D) decrease, and therefore lead to a lower price of water.
Which of the following is a characteristic of an oligopolistic market? a. Firms sell homogeneous products
b. Firms enjoy unlimited market power. c. There is only one product. d. Decision making by firms is highly interdependent.