Is demand more important than supply in determining equilibrium price and quantity in a competitive market?
Please provide the best answer for the statement.
Demand and supply are equally important. It is the intersection of the demand and supply curve that determines equilibrium price and quantity. Without demand or without supply there would be no intersection and no price determination.
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The joining of a firm with another to which it sells an output or from which it buys an input is known as
A) a conglomerate merger. B) a horizontal merger. C) a vertical merger. D) economies to scale.
A monopolistically competitive firm faces a relatively-elastic demand curve as compared to a monopolist firm because of the:
a. presence of a large number of buyers and barriers to entry. b. presence of a large number of firms and easy entry into the market. c. production of perfectly homogeneous products. d. production of unique products and the presence of barriers to entry. e. production of goods that are perfect complements of each other.
Monopolistic competition is characterized by: a. a small number of firms selling differentiated products. b. a large number of firms selling identical products
c. high barriers to entry. d. a large number of firms selling differentiated products.
Refer to the above figure. The figure represents the saving function for the consumer. Point B represents
A. the amount of autonomous consumption. B. a situation in which saving is positive. C. a situation in which saving is negative. D. the point at which saving equals zero.