Identify the correct statement
a. Aggregate demand alone determines equilibrium price and output.
b. Aggregate supply alone determines equilibrium price and output.
c. Aggregate demand and aggregate supply determine equilibrium price and output.
d. Aggregate demand shows the positive relationship between price level and real GDP.
e. Aggregate supply shows the negative relationship between price level and real GDP.
c
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Daisy incurs $7,200 per month in fixed costs operating her floral shop. She pays her employees $9.00 per hour and has three assistants, each working 120 hours per month. Her other variable costs are $800 per month. What are Daisy's total variable costs and total costs each month?
a. Total variable costs are $800; total costs are $8,000. b. Total variable costs are $800; total costs are $11,240. c. Total variable costs are $3,240; total costs are $11,240. d. Total variable costs are $4,040; total costs are $11,240.
Suppose that a large dairy farmer is able to raise the market price of milk by withholding milk supply from the market. In this instance,
a. the milk market is perfectly competitive b. buyers will decrease their demand for milk c. buyers will increase their demand for milk d. the milk market is imperfectly competitive e. the milk market will collapse in the long run