If demand and supply both decrease:
A) both price and quantity will be less.
B) both price and quantity will go up.
C) price will fall but quantity will go up.
D) quantity will go down but the effect on price is indeterminate.
Answer: D) quantity will go down but the effect on price is indeterminate.
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When is price fixing among competitors not a violation of the antitrust laws?
A) Price fixing among competitors is always a violation of the antitrust law. B) when a cartel can maximize profit without behaving like a monopoly C) when price fixing leads to a more efficient outcome D) when price fixing does not result in predatory pricing
In most cases, the higher is the quality of the collateral for a loan is
A) the higher is the interest rate. B) the lower is the interest rate. C) the riskier is the loan. D) the greater is the handling charge for the loan.
Which one of these firms would be an oligopolist?
A. Proctor & Gamble B. A family farm C. A McDonald's restaurant in Manhattan D. The only dentist in Hendry County, Florida
We cannot predict the effect on the equilibrium quantity, but know that the market clearing price will decrease when
A. supply decreases and at the same time demand increases. B. supply increases and at the same time demand decreases. C. supply decreases and demand decreases. D. supply increases and demand increases.