Given the aggregate demand curve, a beneficial supply shock will:
a. increase potential output and the price level
b. decrease potential output and the price level.
c. increase potential output and decrease the price level.
d. decrease potential output and increase the price level.
e. cause no change in potential output or the price level.
c
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If the percentage increase in price is 15 percent and the value of the price elasticity of demand is -3, then quantity demanded
A) will increase by 5 percent. B) will decrease by 5 percent. C) will increase by 45 percent. D) will decrease by 45 percent.
A monopolistically competitive market is characterized by:
a. one firm selling a unique product. b. many firms selling identical products. c. many firms selling similar but differentiated products. d. few firms selling identical products. e. few firms selling similar but differentiated products.