Economists assume that when there is a change in supply and/or demand, the market clearing price returns to the equilibrium
A) quickly.
B) slowly.
C) after a protracted negotiation process.
D) after an adjustment period.
D
You might also like to view...
In an industry with a large number of firms,
A) each firm will produce a large quantity, relative to market demand. B) one firm will dominate the market. C) collusion is impossible. D) competition is eliminated. E) barriers to exit must exist.
In the event of a default by a borrower, the bank is not authorized to sell the borrower's collateral to pay off the loan
Indicate whether the statement is true or false
Suppose real GDPs in Hauck and Meran are identical at $10 trillion in 2000. Suppose Hauck's economic growth rate is 2% and Meran's is 4% and the rates remain constant over time. Calculate the percentage difference in their levels of potential output in 2036.
A. There will be no difference in their levels of potential output. B. Meran's potential output will be 50% higher than that of Hauck's. C. Hauck's potential output will be 100% higher than that of Meran's. D. Meran's potential output will be 100% higher than that of Hauck's.
Table 14.4In Table 14.4, Market 3 would be in equilibrium if buyers believed plums accounted for:
A. 11.11% of the market. B. 22.22% of the market. C. 33.33% of the market. D. 66.67% of the market.