If the demand for a product decreases and the supply of the product does not change, equilibrium price and equilibrium quantity will both increase
Indicate whether the statement is true or false
FALSE
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Which of the following differs between a perfectly competitive market and a market with a perfectly price discriminating monopoly?
A) The amount of producer surplus B) The quantity produced C) The total surplus D) None of the above because they are all the same in a perfectly competitive market and in a market with a perfectly price discriminating monopoly.
Refer to Figure 12-9. At price P4, the firm would
A) shut down. B) lose an amount equal to its fixed cost. C) lose an amount less than fixed cost. D) make a profit.
The aggregate demand curve
a. is identical to the AE curve. b. shows the amounts of real output that will be demanded at various price levels. c. shows the amount of real output that will be demanded at various levels of income. d. shows the amount of income that will be earned at various price levels.
A Gini coefficient of one means that
A. all the income is received by the top 20% of families. B. one family has all the income and everyone else has nothing. C. income is distributed equally. D. the income is split equally between the top 20% and the rest of the distribution.