Ceteris paribus, if the market demand for a product increases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. increase; indeterminate
b. decrease; decrease
c. indeterminate; decrease
d. increase; increase
d
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The oligopolistic industry is not allocatively efficient because
A. the industry produces too little of the good. B. the industry produces at the lowest marginal cost. C. the industry produces at the lowest average total cost. D. the industry produces too much of the good.
The above table shows Tammy's total utility from videos and CDs. If Tammy has $110 to spend on videos and CDs and if the price of a video is $10 and the price of a CD is $20, then the maximum utility Tammy can attain is
A) 1700. B) 300. C) 1580. D) 250.
In the above figure, the firm will shut down if price falls below
A) F. B) I. C) H. D) E.
Transaction costs can be defined as the costs:
A. the government must pay to allow for an exchange. B. incurred by buyer and seller in agreeing to and executing a sale of goods or services. C. the government incur to create a structured market for the exchange of buyers and sellers. D. incurred by the buyer and seller in agreeing to and executing a purchase of goods or services, excluding transportation costs.