A change in a fixed tax will cause the consumption schedule to
a. become steeper.
b. become flatter.
c. shift in a parallel manner.
d. remain fixed as the economy moves along the schedule.
c
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Bauxite is used for making aluminum. Which of the following will happen if bauxite prices fall, assuming all else equal?
A) The labor demand curve of aluminum manufacturers will shift to the right. B) The labor demand curve of aluminum manufacturers will shift to the left. C) Aluminum manufacturers will move to a higher point along their labor demand curves. D) Aluminum manufacturers will move to a lower point along their labor demand curves.
The above figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The maximum economic profit this firm can make equal equals
A) $0. B) $80. C) $120. D) $160.