The figure above represents the competitive market for slices of key lime pie. When the price equals $3,
A) there is a shortage of slices of pie.
B) there is a surplus of slices of pie.
C) the efficient quantity of slices is being produced.
D) the quantity produced is inefficient.
E) the deadweight loss is maximized.
C
You might also like to view...
A newly-issued eighteen-year Treasury security can be stripped into __________ separate zero coupon securities
A) two B) eighteen C) thirty-seven D) seventy-three
The export supply and import demand curves measure the domestic shortage and surplus, respectively, at different world prices
a. True b. False Indicate whether the statement is true or false
Which of the following changes could have shifted AE1 to AE2?
a. an overall increase in income
b. an overall decrease in income
c. in increase in the interest rate
d. an increase in consumer confidence
Monopolistic competition is characterized by
A. a large number of sellers with similar products. B. a limited number of sellers with a variety of products. C. one seller with a variety of products. D. one seller with a standardized product.