A sudden fall in the market demand in a competitive industry leads to
a. A short run market equilibrium price higher than the original equilibrium
b. A market equilibrium price lower than the short run price
c. Some firms exiting the market
d. All of the above
c
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Which of the following is inconsistent with a monopoly?
a. a single seller b. a downward-sloping demand curve c. marginal revenue exceeds price d. a U-shaped average total cost curve
When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a surplus of labor
a. True b. False Indicate whether the statement is true or false
The government of Blenova considers two policies. Policy A would shift AD right by 500 units while policy B would shift AD right by 300 units. According to the short-run Phillips curve, policy A will lead
a. to a lower unemployment rate and a lower inflation rate than policy B. b. to a lower unemployment rate and a higher inflation rate than policy B. c. to a higher unemployment rate and lower inflation rate than policy B. d. to a higher unemployment rate and higher inflation rate than policy B.
Negotiations between the buyer and seller of a new house are an example of:
A. producer?producer rivalry. B. monopoly. C. consumer?producer rivalry. D. consumer?consumer rivalry.