Economists assume people's tastes are
a. determined solely by advertising
b. relatively stable over time
c. quite variable
d. irrelevant to utility analysis
e. identical
B
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The figure above illustrates the bagel market. Which of the following statements is correct?
A) With a price ceiling of $1.00 per bagel, the price of a bagel is $1. B) With a price ceiling of $3.00 per bagel, the price of a bagel is $2. C) With no government intervention, the equilibrium price of a bagel is $2. D) Only answers A and B are correct. E) Answers A, B, and C are correct.
Which of the following are variable costs of production?
a. the wages paid to non-salaried employees b. the cost of wood used to produce furniture c. the cost of electricity that powers the lighting and computer systems in an office building d. All of the above are variable costs of production.
Which of the following is a unique characteristic of the oligopolistic market structure?
a. low barriers to entry b. a large number of firms producing highly differentiated products that are complements to each other c. product differentiation among the products produced by individual firms d. mutual interdependence among firms in demand, and thus, in price decisions
If potential buyers of good X expect the price of good X will soon fall, then the current
A) demand for good X will rise. B) demand for good X will remain unchanged. C) demand for good X will fall. D) quantity demanded of good X will fall. E) quantity demanded of good X will rise.