If the price is above the equilibrium price then there is a _______________.
Fill in the blank(s) with the appropriate word(s).
Ans: surplus and the market forces will operate to lower price
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Which of the following statements is true about a competitive market? A competitive market
A) has a handful of sellers but always has many buyers. B) must have a physical location. C) includes markets for goods and services but not for inputs. D) has so many buyers and sellers that no one can influence the price. E) has one seller competing to sell his or her product.
If the demand curve for a firm is downward-sloping, its marginal revenue curve
A) will lie below the demand curve. B) will lie above the demand curve. C) is the same as the demand curve. D) is horizontal.
Which is a stock variable?
A) Labor B) Profit C) Income D) Capital E) Price
Surpluses cause prices to fall while shortages cause prices to rise
a. True b. False Indicate whether the statement is true or false