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FIGURE 1 Price Di Quantity Refer to Figure 1. What is the shift from D to Di cal

ID: 1161137 • Letter: F

Question

FIGURE 1 Price Di Quantity Refer to Figure 1. What is the shift from D to Di called? 10. a. an increase in demand b. a decrease in demand c. a decrease in quantity demanded d. an increase in quantity demanded 11. Refer to Figure 1. What could cause the shift from D to Di? a. an increase in price b. a decrease in the price of a complement c. an increase in technology d. a decrease in the price of a substitute 12. Letting A denote "change," when will a competitive firm hire an additional worker? only if? ?n the firm's revenue > ? in the firm's cost only ifa in the firm's marginal product > ? in the firm's profit only iA in the firm's profit > ? in the firm's cost only if? în the marginal product > ? in the firm's cost b, d, Which of the following theories would suggest that attending school does not improve productivity, but that high-ability people are more likely to stay in schoolt? 13. a. the physical-capital theory b. the human-capital theory c. the signaling theory d. neoclassical theory

Explanation / Answer

10.

B

There is a leftward shift to the demand, causing a decrease in demand.

11.

D

A decrease in the price of substitutes, will cause the increase in demand of the substitute. But, it will make leftward shift in the demand of the existing product from D to D1.

12.

D

Additional workers will be hired as long as change in MRP is greater than the marginal cost.

13.

C

It is the part of signalling theory.