When the supply curve shifts to the left and there is no change in demand:
A. the equilibrium price will rise.
B. the market cannot reestablish an equilibrium.
C. the equilibrium price will fall.
D. the equilibrium quantity will rise.
Answer: A
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If a firm can change market prices by altering its output, then it
A. Has market power. B. Is a price taker. C. Is a competitive firm. D. Faces a horizontal demand curve.
Refer to the figure above. What is the market-wide consumer surplus when the market price of calculators is $6?
A) $20 B) $35 C) $50 D) $70
An increase in demand is represented by a
A) shift of the demand curve to the left. B) shift of the demand curve to the right. C) movement down the demand curve. D) movement up the demand curve.
Horizontal merger occurs when
A) two firms merge where one had sold its output to the other as an input. B) the merger moves the combined firm onto the horizontal portion of its long-run average cost curve. C) two firms merge where each is about the same size. D) two firms producing a similar product merge.