Which of the following statements about economic models is TRUE?
A) A good economic model is complex.
B) A good model does not rely on any assumptions.
C) Every model is based on a set of assumptions.
D) Economic models are designed to explain what people need.
C
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Homer, Bart, and Lisa are the only consumers in the market. Using the information in the above table, what is the market demand for chocolate chip cookies at $4.00 per pound?
A) 21 pounds B) 17 pounds C) 11 pounds D) 4 pounds
Suppose A and B are complementary goods. Other things being equal, the demand curve for A will shift to the right when the price of B goes up
a. True b. False Indicate whether the statement is true or false
When the market price is above the equilibrium price, the quantity of the good demanded exceeds the quantity supplied
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 and is a monopolistically competitive firm. To maximize profits in the short run, this firm should set a price of
A. $18. B. $22. C. $23. D. $25.