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.
E
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Homothetic goods are neither necessities nor luxuries, but rather lie on the borderline between them. ?
Answer the following statement true (T) or false (F)
Refer to the figure above. If the optimal number of machines rented is 100, the market rental price must be:
A) $3 per month. B) $4 per month. C) $5 per month. D) $7 per month.
Are all efficient outcomes also equitable? Explain
What will be an ideal response?
As demand for MP3 music downloads increases, other things being equal, we can expect
A) a decrease in both the relative price and quantity of MP3 music downloads. B) a decrease in the supply of MP3 music downloads. C) more MP3 music downloads to be produced. D) an excess number of MP3 music downloads in the market.