Normally when aggregate demand increases, firms find it more profitable to raise prices than to leave prices unchanged the idea behind the small-menu-cost explanation for price stickiness is that firms will leave their prices unchanged if their profit gain from adjusting prices is less than menu costs they would incur if they change prices if firms anticipate that a rise in demand is likely to last for a long time then they wi
ll be a. less likely to increase their prices since their future profits will be lower than the small, one-time menu cost
b. more likely to increase their prices since their future profits will be higher than the small one-time menu cost
c. more likely to increase their production since their more profits will be higher than the menu cost
d) less likely to increase their production since their future profits will be lower than the menu cost

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.

Use this image to answer the following question. when the economy is operating at point b, the us congress is most likely to follow

How can a company salesperson with product development