When the price is $5
A. quantity supplied is greater than quantity demanded and, therefore, price must rise to get to equilibrium.
B. quantity supplied is greater than quantity demanded and, therefore, price must fall to get to equilibrium.
C. quantity demanded is greater than quantity supplied and, therefore, price must rise to get to equilibrium.
D. quantity demanded is greater than quantity supplied and, therefore, price must fall to get to equilibrium.
B. quantity supplied is greater than quantity demanded and, therefore, price must fall to get to equilibrium.
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What do we assume about households and firms?
A) They act irrationally. B) They do what the government tells them to do. C) They look after each other. D) They optimize.
What happens as interest rates fall?
A) The number of profitable investment opportunities declines. B) The opportunity cost of using retained earnings to finance investment spending declines. C) Planned investment spending also falls. D) Planned investment spending remains constant since it depends on profit projections not interest rates.
Based on the following game, what are the secure strategies for player 1 and player 2?Player 1Player 2??t1t2?S110,1515,8?S2-10,710,20
A. S2 and t1 B. S1 and t2 C. S1 and t1 D. S2 and t2
The market demand for wheat is Q = 100 - 2p + 1pb, where pb is the price of barley. If the price of wheat is $2 and the price of barley is $4, the price elasticity of demand
A) equals (-4/100). B) equals (-25). C) equals (-1). D) cannot be calculated without more information.