Refer to Exhibit 21-7. For graph (3), if the price of Y is $200, the price of X is
Exhibit 21-7
a. $50.
b. $40.
c. $30.
d. $25.
e. $15.
For a factor price taker, the demand for labor curve is horizontal at the going market
wage.
a. True
b. False
Refer to Exhibit 24-9. A single-price monopolist earns a total profit of __________
when it produces the profit maximizing level of output.
a. $120
b. $110
c. $180
d. $80
e. $49
Suppose that for a given good demand increases and supply decreases at the same
time.If demand increases by a lesser amount than supply decreases, then equilibrium
price __________ and equilibrium quantity __________ for that good.
a. rises; falls
b. falls; falls
c. rises; rises
d. falls; rises
If two goods are substitute goods,
a. an increase in the price of one will cause a decrease in the demand for the other.
b. an increase in the price of one will cause an increase in the demand for the other.
c. the price elasticity of demand for both goods will be greater than 1.
d. the price elasticity of demand for both goods will be less than 1.