If the demand for mushrooms increases while the supply remains unchanged, this will result in
A. a shortage of mushrooms as the market price remains unchanged.
B. an increase in the quantity of mushrooms sold and an increase in their price.
C. an increase in the quantity of mushrooms sold but no change in price.
D. a decrease in the quantity of mushrooms sold and an increase in their price.
B. an increase in the quantity of mushrooms sold and an increase in their price.
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The marginal product of a country's workers falls during winters due to excessive cold. Which of the following is likely to happen in this case, assuming all else equal?
A) The country's labor demand curve will shift to the right in winter. B) There will be an upward movement along the labor demand curve. C) The country's labor demand curve will shift to the left in winter. D) There will be a downward movement along the labor demand curve.
If a group of individual consumers can be treated as a single representative consumer, then the aggregate consumer surplus of the group can be measured along the market demand curve.
Answer the following statement true (T) or false (F)
Which of the following is evidence of a shortage of walnuts?
A) The equilibrium price of walnuts falls due to a decrease in demand. B) The quantity of walnuts demanded is greater than the quantity supplied. C) Firms lower the price of walnuts. D) The price of cashews is lowered in order to make up for the walnut shortage.
In a perfectly competitive market, which two conditions must be met to achieve long-run equilibrium?
a. Productive efficiency and allocative efficiency b. Allocative efficiency and profit maximization c. Productive efficiency and low average costs d. Zero economic profits and zero accounting profits