What is an economic market?
What will be an ideal response?
An economic market refers to a group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade.
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Refer to Table 3-3. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. If the price of Kona coffee rises from $4 to $5, the market quantity demanded would
A) decrease by 115 lbs. B) increase by 35 lbs. C) decrease by 35 lbs. D) increase by 115 lbs.
Allocative efficiency means that
a. firms have maximized production b. all mutually beneficial trades have taken place c. the next unit sold will increase total surplus d. producer surplus is maximized e. no mutually beneficial trades have occurred
The two main responsibilities of the Federal Reserve System are to ________ and to ________.
A. insure bank deposits; print currency B. enable banks to make affordable mortgages; control the exchange rate of the U.S. dollar C. apprehend counterfeiters; regulate the stock market D. conduct monetary policy; oversee financial markets
As price is lowered from a point higher than the equilibrium price, it will bring about
a. an increase in demand. b. a decrease in supply. c. an increase in quantity demanded. d. an increase in supply.