Table 14.3In Table 14.3, Market 3 would be in equilibrium if buyers believed lemons account for:
A. 45% of the market.
B. 50% of the market.
C. 55% of the market.
D. 60% of the market.
Answer: B
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A price discriminating monopolist charges lower prices to customers with
A) lower supply elasticities. B) higher supply elasticities. C) lower willingness to pay. D) higher willingness to pay.
When there is a shortage I. there is a tendency for price to increase. II. there is an excess quantity demanded
A) I only B) II only C) Both I and II D) Neither I nor II
Assuming wages are indexed to inflation, if prices rose by 1.4 percent this month and your last month's wage was $1,000, your wage this month would be $1,014
a. True b. False Indicate whether the statement is true or false
If a firm decreases production, then its:
A. fixed costs decrease. B. total costs stay the same. C. variable costs decrease. D. None of these is true.