Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.
Figure 3.19Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2, the equilibrium price will change from ________ and the equilibrium quantity will change from ________.
A. $5.00 to $7.00; 10 to 7
B. $7.00 to $5.00; 7 to 10
C. $7.00 to $5.00; 7 to 4
D. $5.00 to $7.00; 4 to 7
Answer: A
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For the additive social welfare function to yield results, we must assume
A. individuals have identical utility functions. B. individuals' utility functions have diminishing marginal utility of income. C. the total amount of income available is fixed. D. all of these answer options are correct.
Compared to perfect competitors in the long run, oligopolists charge ______ prices and earn more ______.
Fill in the blank(s) with the appropriate word(s).
Minimum wage laws tend to make the price level more flexible rather than less flexible.
Answer the following statement true (T) or false (F)
Suppose that some teachers have decided that economic and financial uncertainty have made the prospect of retiring more risky, and therefore carry a higher cost than not retiring. By using all available information as they act to achieve their goals,
these teachers are exemplifying the economic idea that A) people are rational. B) people respond to economic incentives. C) optimal decisions are made at the margin. D) equity is more important than efficiency.