When demand for a product increases but the supply of the product remains unchanged, the equilibrium price of the product will
a. rise and equilibrium quantity will decrease.
b. fall.
c. first fall and then return to the original level.
d. rise, and equilibrium quantity will increase.
d. rise, and equilibrium quantity will increase.
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The price for labor is the wage rate. What happens to the quantity of labor demanded if wages increase?
a. It increases. b. It decreases. c. It does not change. d. The whole demand schedule shifts to the left.
Which of the following has had the most rapid growth over the last two decades?
a. Germany b. France c. Pakistan d. Bangladesh e. India
Price discrimination is related to elasticity because:
A. the firm can increase revenues by charging customers with elastic demands higher prices and charging customers with inelastic demands lower prices. B. the firm can increase revenues by charging customers with elastic demands lower prices and charging customers with inelastic demands higher prices. C. the firm can increase revenues by charging all customers higher prices. D. None of these; elasticity and price discrimination are unrelated.
What is one reason perfectly competitive firms wish to be ever more efficient?
A) Individual firms are awarded by the tax code to be more efficient. B) Individual firms can better control their costs than the price they can charge. C) Individual firms can better control their costs than their output levels. D) Individual firms don't need to be efficient; government policies do not reward efficiency.