An example of normative analysis is studying
a. how market forces produce equilibrium.
b. surpluses and shortages.
c. whether equilibrium outcomes are socially desirable.
d. income distributions.
c
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When floods wiped out the banana crop in Central America, the equili-brium price of bananas ________ and the equilibrium quantity of bananas ________
A. rose; increased B. rose; decreased C. fell; increased D. fell; decreased
Refer to Figure 14-4. How will Rainbow Writer respond to Odeon's two possible offers?
A) Rainbow Writer will only accept an offer of $30 per copy of the software package. B) Rainbow Writer will only accept an offer of $40 per copy of the software package. C) Rainbow Writer will reject either offer. D) Rainbow Writer will accept either offer.
Over time, aggregate demand and aggregate supply grow by the same amount
a. True b. False Indicate whether the statement is true or false
In an oligopoly, advertising: a. allows a firm to sell any quantity it wishes
b. shapes consumers' preferences. c. shapes perceived demand for a price taker. d. allows a firm to raise the prevailing market price.