Between 2000 and 2015, advances in PC production technology increased the supply of PCs sharply. The demand for PCs also increased, but not nearly as much as the supply did
As a result, the price of a PC ________ and the quantity of PCs sold ________. A) rose; decreased
B) rose; increased
C) fell; decreased
D) fell; increased
D
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U.S. factories produce ________ of the shoes New Balance sells in the United States
A) none B) about 25 percent C) roughly half D) about 75 percent
In the short run, in a perfectly competitive market, a firm will shut down if
A) P < AVC for all levels of output. B) P < ATC for all levels of output. C) ATC > P > AVC for all levels of output. D) P > AFC for all levels of output.
Explain why an equilibrium point in a free market is considered to be the socially efficient point. Sketch graph a situation where a government price ceiling below equilibrium leads to inefficiency. Explain in words why the inefficiency exists and shade in on your graph the lost benefit that creates the inefficiency.
What will be an ideal response?
If a consumer wishes to maximize satisfaction given limited income and MUx/Px< MUy/Py then the consumer should:
A. buy less of both X and Y. B. buy more of X and less of Y. C. buy more of Y and less of X. D. buy more of both X and Y.