The price mechanism
A. works best when many competing business firms are in each industry.
B. works best when government through a central planning agency sets prices.
C. works best when corporations set prices for a market economy.
D. All of the choices are true about price mechanism.
A. works best when many competing business firms are in each industry.
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Suppose a market has only one seller and only one buyer of a good in the market. The buyer is willing to pay $50 for the good and the seller is willing to accept $15. The market price of the good is determined at $30
If they trade, the social surplus will be ________. A) $15 B) $35 C) $45 D) $65
Figure 9.6 shows an individual's demand curve for time per month spent telecommunicating while driving (talking on the car phone.) A car phone is useless except for talking with somebody who is not in the car
If calls are priced at ten cents per minute, what is the consumer surplus derived from talking? What is the most this person would pay for the car phone? Explain.
Figure 4-21
A shortage will tend to occur at which price in Figure 4-21?
a.
P1
b.
P2
c.
P3
A decrease in business taxes will tend to:
a. Increase aggregate demand but not change aggregate supply b. Increase aggregate demand and increase aggregate supply c. Decrease aggregate supply and decrease aggregate demand d. Increase aggregate supply but not change aggregate demand