A sudden rise in the market demand in a competitive industry leads to
a. A market equilibrium price higher than the original equilibrium in the short-run
b. A market equilibrium price equal to the original equilibrium in the long-run
c. Both a and b
d. None of the above
c
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The conclusion that the level of output is efficient at the market equilibrium rests on all of the following assumptions EXCEPT that __________.
A. buyers and sellers are well-informed B. there are no external costs or benefits C. the government regulates price and output D. the market is perfectly competitive
Many economists argue that the most efficient way to control pollution is to
a. ban all activities that create pollution. b. enforce legal standards on air and water quality. c. promote environmental awareness among citizens. d. impose taxes on emissions.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country B has the ________ advantage in the production of tablets, which means they should specialize in ________.
A. comparative; iPods B. absolute; tablets C. absolute; iPods D. comparative; tablets
When recent college graduates begin looking for their first professional work in June, the unemployment rate
A. increases as the labor force decreases. B. increases as the labor force increases. C. decreases as the labor force decreases. D. decreases as the labor force increases.