Refer to Figure 25

question 124

Multiple Choice

Refer to Figure 25.1 for an oligopoly firm.The existing price and quantity are $10 and 2,000 units.If we assume that rival firms match price decreases but not price increases, the firm's demand curve will most likely be (from left to right)

• A)D₁ED₁.
• B)D₂ED₂.
• C)D₁ED₂.
• D)D₂ED₁.

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Definitions:

Unemployment

The situation when individuals who are capable of working and willing to work are unable to find employment.

Long-run Phillips Curve

An economic concept stating that in the long run, there is no trade-off between inflation and unemployment; the curve is vertical at the natural rate of unemployment.

Inflation

How rapidly the across-the-board prices of goods and services increase, impairing fiscal buying ability.

Unemployment

Unemployment occurs when individuals who are capable of working and are looking for a job are unable to find employment. It is a key economic indicator.