The invention of machinery that can double the amount of gold extracted from raw ore will likely lead mining companies to
a. raise the world price of gold to pay for the new machinery.
b. lower the world price of gold because any amount can now be produced more cheaply.
c. raise the world price of gold because miners' wages must double as their productivity doubles.
d. lower the world price of gold only if new mining companies are not allowed to enter the industry.
b
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If price is initially above the equilibrium level,
A) the supply curve will shift rightward. B) the supply curve will shift leftward. C) excess supply exists. D) all firms can sell as much as they want.
A monopoly firm's demand curve
A) is the same as the market demand curve. B) is perfectly inelastic. C) is more inelastic than the demand curve for the product. D) is inelastic at high prices and elastic at lower prices.