Are sellers always able to produce a surplus of the goods they sell?
A) No, because almost all goods are scarce.
B) Only if they can increase supply faster than demand increases
C) Only if they can prevent new uses for the good from being developed.
D) Yes, if they insist upon receiving a sufficiently high price that is above the market clearing level.
D
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Which of the following statements is NOT true about money?
A) Money can only be coins and paper. B) Anything that serves as a medium of exchange, as a unit of accounting, as a store of value, and as a standard of deferred payment can be called money. C) Money is any medium that is universally accepted by sellers and creditors. D) Money is a standard of deferred payment.
The cost of producing each bottle of a certain brand of shampoo is $0.25. If the market for shampoo is monopolistically competitive and demand for shampoo is inelastic, a manufacturer who charges $0.35 for each bottle will ________
A) shut down production in the short run B) exit the industry in the long run C) earn an economic profit of $0.10 per bottle D) earn a total revenue of $0.10 per bottle
A firm has fixed costs
A) in the short run and in the long run. B) in the short run but not in the long run. C) in the long run but not in the short run. D) neither in the long run nor in the short run.
Suppose the market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the market supply function is Qs = 2.5P - 7.5. How much deadweight loss would there be in this market if the quantity bought and sold was 8,500 units?
A. $2.03 B. $4.05 C. $1,800 D. $2,025