Which of the following will hold true if the market for cameras is in equilibrium at a price of $40?
A) The quantity of cameras produced will equal the quantity of cameras bought in the market.
B) Sellers of cameras will have an incentive to charge a price higher than $40.
C) Buyers of cameras will want to buy fewer cameras than they are purchasing at equilibrium.
D) If the cost of producing cameras falls below $40 per camera, all sellers will stop supplying cameras.
A
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Which of the following holds that economic decision making on all levels is unbiased and is based on all available information?
A) adaptive expectations based theory B) rational expectations based theory C) Keynesian cycle theory D) none of the above
Refer to Figure 4-6. What area represents the deadweight loss at the equilibrium price of P1?
A) G + H B) C + E C) C + E + H D) There is no deadweight loss at the price of P1.
Refer to Table 2-9. What is Serena's opportunity cost of making a bracelet?
A) 2 necklaces B) 3/4 of a bracelet C) 1/2 of a necklace D) 1/2 of a bracelet
To maintain a fixed exchange rate, authorities
A) make laws stipulating the exchange rate. B) modify money supply. C) modify government expenses. D) modify taxes.