FIGURE 4- 3 -Refer to Figure 4- 3. the Diagram Shows a Rightward

question 25

Multiple Choice

FIGURE 4- 3
-Refer to Figure 4- 3. The diagram shows a rightward shift in the demand curve for some good, and the short- run and long- run supply curves (SS and SL, respectively) . In the new short- run equilibrium after the increase in demand, producers' revenue

• A) could be higher or lower than at E0, depending on the short- run elasticity of supply.
• B) is unambiguously lower than at E0.
• C) is unambiguously higher than at E0.
• D) is unambiguously higher than at EL.
• E) is unambiguously lower than in the long- run equilibrium at EL.

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Definitions:

Schedule D

A tax form used to report capital gains and losses incurred during a specific year.

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A tax form used to report the sale or exchange of business property.

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An activity engaged in regularly and continuously for the purpose of earning income or profit.

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