Answer:
Part1:
A. Birth rates in the United States decline: diapers
- demand decreases, demand curve shifts to the left
B. The government provides subsidies to ethanol producers: ethanol
- supply increases, supply curve shifts to the right
C. Starbucks coffee drinkers suffer due to a small coffee harvest: Starbucks coffee
- supply decreases, supply curve shifts to the left
D. Consumer incomes decrease: public transportation
- demand decreases, demand curve shifts to the left
Part2:
A. The price of beer increases: Solo cups
- demand decreases, quantity demanded will lower following the demand curve
B. Henry Ford develops assembly-line production: automobiles
- supply increases, supply curve shifts to the right
C. Natural gas producers are making large economic losses: natural gas
- supply decreases, supply curve shifts to the left
D. The price of PlayStation increases: Xbox
- demand for Xbox decreases, quantity demanded will lower following the demand curve
Answer:
The correct option is D
Explanation:
Aggregate expenditure is the aggregate of all the expenditures which is undertaken in the economy by the factors during a particular period of time.
When the economy is closed, the aggregate expenditure will be equal to the:
Aggregate Expenditure = Consumption + Investment + Government spending
OR
AE = C + I + G
It determine or evaluate the aggregate amount which households and firms plan to spend on the goods and services at the every level of the income.
Answer:
the minimum output level where the firm's average total costs are lowest.
Explanation:
When we are analyzing a firm's long-run average cost (LRAC) curve, the minimum efficient scale is the lowest point or range on the curve. This means that at this point or range, minimum production costs are achieved. It is supposed to be the point or range at which the firm should be able to maximize its profits, although that doesn't only depend on costs but also on revenues. The point at which profits are maximized is given by the intersection of the marginal revenue curve and the minimum efficient scale.
