If the expected price of oil rises, then
A. the equilibrium price and quantity will not change.
B. the current equilibrium price will rise, and the current equilibrium quantity will fall.
C. the current equilibrium price and quantity will both rise.
D. the equilibrium price will rise, but the change in the equilibrium quantity will depend on whether the demand change outweighs the supply change.
Answer: D
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A firm can sell 10 units if the price is $100 and can sell 8 units if the price is $125. Using the midpoint method, what is the price elasticity of demand?
A) 0.75 B) 1.00 C) 1.25 D) 0.50 E) 0.0
As a country that has a bowed-out production possibilities frontier produces more of one good, the opportunity cost of a unit of that good ________
A) might increase or decrease B) remains the same C) increases D) decreases