Assume the market for paper plates is perfectly competitive and currently in equilibrium. If the demand increases while the supply decreases, then we can be certain that:.
a. the equilibrium price will increase.
b. the equilibrium quantity will increase.
c. both price and quantity will increase.
d. both price and quantity will decrease.
Answers: 3
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Within the relevant range, if there is a change in the level of the cost driver, then a. total fixed costs will remain the same and total variable costs will change b. total fixed costs will change and total variable costs will remain the same c. total fixed costs and total variable costs will change d. total fixed costs and total variable costs will remain the same
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Consider the following two projects. both have costs of $5,000 in year 1. project 1 provides benefits of $2,000 in each of the first four years only. the second provides benefits of $2,000 for each of years 6 to 10 only. compute the net benefits using a discount rate of 6 percent. repeat using a discount rate of 12 percent. what can you conclude from this exercise?
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Assume the market for paper plates is perfectly competitive and currently in equilibrium. If the dem...
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