Refer to the above diagram. The equilibrium price and quantity in this market will be:
A. $1.60 and 290.
B. $.50 and 130.
C. $1.60 and 130.
D. $1.00 and 200.
Answer: D
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A shift in supply means a change in the quantity supplied at _______ price(s).
a. low b. high c. no d. every
For a particular good, an 8 percent increase in price causes a 4 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
a. There are many close substitutes for this good. b. The good is a luxury. c. The market for the good is broadly defined. d. The relevant time horizon is long.
Household spending on goods and services amounts for what percentage of GDP?
a. 30 b. 50 c. 70 d. 90
One of the ways of overcoming the problem of adverse selection is through
A. costless contracting. B. free-riding. C. signaling. D. bargaining.