Economics question

D Question 21 3.75 pts A firm has a significant amount of monopoly power. It sells a product which does not have many good substitutes. Consequently, the demand for this product is most likely: O perfectly elastic. O indeterminate. O unit elastic. O elastic. O inelastic. Previous NextD Question 31 3.75 pts The substitution effect describes: the change in quantity demanded that results from a change in price that makes a good more or less expensive relative to other goods that are substitutes. the change in nominal GDP when inflation increases. O a rationale for a positively sloped supply curve. O the change in quantity demanded that results from the effect of a change in the good's price on consumers' purchasing power. O the increase in demand for a normal good when income increases. NextD Question 26 3.75 pts A free market system, which determines prices through demand and supply, is said to be very responsive to consumer needs. The mechanism through which this takes place works as follows: government determines the relevant price and consumers react to this based on their incomes and preferences. O greater demand for a product causes a higher price and a higher price gives the firms the incentive to produce more of that product. O when the demand is not there for a particular product, a firm will artificially create it through advertising. Consumers always respond to firms this way by eliminating any potential surplus. O an increase in demand leads to lower prices, which create shortages and incentives for films to produce more. Previous Next KD Question 19 3.75 pts Suppose that a business incurred implicit costs of $500,000 and explicit costs of $6 million in a specific year. If the firm sold 100,000 units of its output at $60 per unit, its economic: O losses were $500,000 and accounting profits were zero. O profits were zero and accounting profits were $100,000. O profits were zero and accounting profits were $500,000. O profits were zero and accounting profits were negative. Previous Next