ECO 561 Final Exam (100% Correct)1) Suppose that in the clothing market, production costs have fallen, but theequilibrium price and quantity purchased have both increased. Based on thisinformation you can conclude thatA. the supply of clothing has grown faster than the demand for clothingB. demand for clothing has grown faster than the supply of clothingC. the supply of and demand for clothing have grown by the same proportionD. there is no way to determine what has happened to supply and demand with thisinformation
2) Camille's Creations and Julia's Jewels both sell beads in a competitivemarket. If at the market price of $5, both are running out of beads to sell (theycan't keep up with the quantity demanded at that price), then we would expectboth Camille's and Julia's to:
3) In which of the following industries are economies of scale exhausted atrelatively low levels of output?