When supply is fixed or the product is unique, then price is
A. government determined.
B. demand determined.
C. supply determined.
D. indeterminate.
Answer: B
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See Scenario 4.5. The Engel curve for grilled cheese sandwiches is:
A) downward sloping. B) horizontal. C) upward sloping. D) none of the above
If the government imposes a price ceiling that is lower than the market clearing price, then
A) consumer surplus will increase while producer surplus will decrease. B) consumer surplus will decrease while producer surplus will increase. C) both consumer surplus and producer surplus will decrease. D) both consumer surplus and producer surplus will increase.
Say's law states that
A. desired expenditures will equal actual expenditures. B. demand is always less than supply. C. people produce only the goods they want. D. overproduction is never possible because of limited resources.
The effects of the national health care program on labor markets will
A) lower the effective wage rate that they must pay for each unit of labor. B) decrease the marginal revenue product of labor. C) increase the marginal revenue product of labor. D) move upward along their downward-sloping marginal-product-of-labor curve.