A quantity restriction leads to a price ________ the equilibrium price.

A. at
B. above
C. below
D. Either at or above is correct.


Answer: D

Economics

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For a perfectly competitive firm, profit maximization occurs when output is such that

A) total revenue (TR) is maximized. B) total cost (TC) is minimized. C) marginal revenue (MR) = marginal cost (MC). D) average total cost (ATC) is minimized. E) total revenue (TR) equals total cost (TC).

Economics

Equity instruments are traded in the ________ market

A) money B) bond C) capital D) commodities

Economics

According to the quantity theory of money, an increase in the stock of precious metals or bills of exchange usually results in increased trade and rising prices. Both economic events helped merchant capitalists and the king

Indicate whether the statement is true or false

Economics

At a price of $400, consumers demand 1,500 units of a computer. When the price of the computer increases to $440, quantity demanded drops to 1,200 units. The price elasticity of demand for the computer is:

a. 2.6. b. 2.2. c. 2.1. d. 2.3.

Economics