The equilibrium of supply and demand in a market maximizes the total benefits to buyers and sellers of participating in that market
a. True
b. False
Indicate whether the statement is true or false
True
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Lucky buys hats for $20 but Lucky will not sell one of her hats for less than $35. Lucky is ________
A) displaying the endowment effect B) making decisions using her prefrontal cortex C) exhibiting bounded self-interest D) showing unbounded will power
The _____ is both a forum where farmers decide what their dues will purchase, and an organization that informally coerces payments from them
a. beekeeper's cooperative b. government cooperative c. beekeeper's association d. farmer's association
Long-run economic profits are possible under
A) perfect competition and oligopoly. B) monopolistic competition and monopoly. C) oligopoly and monopoly. D) monopolistic competition and oligopoly.
Refer to the information provided in Figure 4.2 below to answer the question(s) that follow.
Figure 4.2Refer to Figure 4.2. The market is initially in equilibrium at Point A and supply shifts from S1 to S2. Which of the following statements is true?
A. There is no need for price to serve as a rationing device in this case because the new equilibrium quantity is higher than the original equilibrium quantity. B. Price will still serve as a rationing device causing quantity demanded to fall from 11 to 8 soft pretzels. C. The market cannot move to a new equilibrium until there is also a change in supply. D. Price will still serve as a rationing device causing quantity supplied to rise from 8 to 11 soft pretzels.