Question

Look at the graph. A medical device company is selling a new diagnostic tool at the equilibrium price of $15. The company hires a marketing firm to run an advertising campaign to publicize recent positive findings regarding the effectiveness of the tool. Based on the graph, what would be the result?

A new equilibrium point, because the demand would increase

A shortage, because the price is higher than equilibrium price

A surplus, because the price is higher than equilibrium price

Selling fewer devices, because demand would decrease

Answer 1

A

Answer 2

Angela is a musician who writes short musical pieces for use in religious services and nonreligious festivals. There is a large anniversary celebration in her town in one month, and she has been asked to compose an original nonreligious piece. How might this affect her production possibility curve for new music?

Production would decrease for both religious and nonreligious music.

Production would decrease for nonreligious music and increase for religious music.

Production would increase for both religious and nonreligious music.

Production would increase for nonreligious music and decrease for religious music

Answer 3

D because she's composing nonreligious music.