Which of the following statements best describes the outcome of a change in demand?
a. A change in the demand of a good never causes the demand curve for that good to shift.
b. A change in the demand of a good never causes the demand or supply curve for that good to shift.
c. A change in the demand of a good never causes the supply curve for that good to shift.
d. A change in the demand of a good causes the demand and supply curves for that good to shift.
b. A change in the demand of a good never causes the demand or supply curve for that good to shift.
A change in the demand of a good never causes the demand or supply curve for that good to shift.
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Uncertainty includes all of the following except ____
a. unknown effects of deliberate actions b. incomplete information as to the type of competitor c. random disturbances d. unverifiable claims e. accidents due to weather hazards
Prices are sticky as a result of
A. market competition. B. rational inattention. C. rational expectations. D. frequent information updates.
The equilibrium price will fall and the equilibrium quantity might increase, decrease, or stay the same when the
A) demand and the supply of a good both increase. B) demand for a good increases and the supply of it decreases. C) demand for a good decreases and the supply of it increases. D) demand and the supply of a good both decrease.
Is it possible for an equilibrium that is consistent with purely competitive conditions to arise in an industry with positive scale economies? If so, explain how this could happen. If not, why not?
What will be an ideal response?