When there is a shortage
A. quantity demanded is greater than quantity supplied.
B. quantity supplied is greater than quantity demanded.
C. quantity demanded is equal to quantity supplied.
A. quantity demanded is greater than quantity supplied.
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A good measure of productivity is
A) the interest rate. B) the inflation rate. C) aggregate output divided by employment. D) the growth rate of aggregate output.
If a cartel is unable to monitor its members and punish those firms that violate the agreement, then
A) the member firms will each act as price setters. B) the cartel will prosper in the long run. C) the market will become a monopoly. D) the cartel will fail.
Firm A producing one good acquires another firm B producing another good. The cross price elasticity of demand for the goods owned by each firm is -1.4 . Holding other things constant, the acquiring firm should
a. Raise prices on both goods b. Lower prices on both goods c. Raise price on the acquired good only d. Need more information
Suppose that Hannah spends $3 to buy five biscuits. The marginal utility of the fifth biscuit is valued at $0.60; total utility of the five biscuits is valued at $4.20 . Given this information, what do we know about consumer surplus?
a. It is impossible to determine consumer surplus without knowing the marginal utility of the first four biscuits. b. It is impossible to determine consumer surplus without knowing the price per biscuit. c. It is impossible to determine consumer surplus without knowing the price Hannah was willing to pay for the first five biscuits. d. Consumer surplus is equal to $2.40. e. Consumer surplus is equal to $1.20.