An increase in aggregate demand if aggregate supply is totally inelastic will ?

A. Increase price but not output
B. Increase output but not price
C. Increase output and price
D. Decrease output and price

The quantity demanded of Pepsi has decreased. The best explanation for this is that ?

A. Pepsi’s advertising is not as effective as in the past .
B. The price of coca cola has increased,
C. Pepsi consumers had an increase in income.
D. The price of pepsi increased

When the decrease in the price of one good causes the demand for another good to decrease, the goods are_________?

A. Complements
B. Substitutes
C. Inferior
D. Nromal

If the demand for coffee decreases as income decreases, coffee is ?

A. An inferior good
B. A normal good
C. A complementary good
D. A substitute good

Which of the following is consistent with the law of supply ?

A. As the price of calculators rise, the quantity supplied of calculators decreases, ceteris paribus.
B. As the price of calculators calls the supply of calculators increases, ceteris paribus.
C. As the price of calculators rise, the quantity supplied of calculators increases, ceteris paribus.
D. As the price of calculators rise, the supply of calculators increases ceteris paribus.

If both marginal cost and marginal revenue increase, a firm ?

A. Should increase output
B. Should reduce output
C. Will require further information on how to respond
D. Should not change output

The Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce ?

A. Have few substitutes.
B. Are normal goods
C. Have few complementary goods.
D. Have many complementary goods.

A firm that breaks even after all economic costs are paid is earning ?

A. Economic profit
B. Accounting profit
C. Normal profit
D. Supernormal profit

Profits are maximized when ?

A. Costs are minimized
B. Revenue is maximized
C. Average cost is less than average revenue
D. Marginal cost equals marginal revenue

If a firm wage costs increase this will cause __________ and __________?

A. Marginal cost to increase, output to fall
B. Marginal revenue to increase output to fall
C. Opportunity cost to increase the firm will close
D. Average cost will rise output will increase ____ output and an upward shift in marginal revenue ____ output