The market demand is the:
A. horizontal sum of all individual demand curves in a market.
B. horizontal sum of all individual prices in a market.
C. sum of all individual demand curves and supplies in a market.
D. vertical sum of all individual demand curves.
Answer: A
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Using resources in such a way as to maximize the production of goods and services is called ____________ .
a. efficiency. b. underutilization. c. thinking at the margins. d. growth.
Firms 1 and 2 compete in a Cournot duopoly. If firm 1 adopts a strategy that raises firm 2's marginal cost:
A. firm 2 will increase its output. B. firm 1 will enjoy higher profits. C. firm 1 will lose market share. D. All of the statements associated with this question are correct.
The output effect is the change in labor supply due to a change in the quantity of output produced.
Answer the following statement true (T) or false (F)
According to the real-balance effect, an increase in the price level will
A. decrease total planned real expenditures because of an increase in interest rates. B. decrease total planned real expenditures as a result of a decrease in the real value of money balances. C. leave total planned real expenditures unchanged since the price level of all goods has increased. D. lead to a corresponding increase in total planned real expenditures since businesses are now earning higher profits.