When buyers will purchase as much as sellers are willing to sell, what is the condition that has to be reached?
a. supply and demand
b. excess demand
c. price floor
d. equilibrium
Ans: d. equilibrium
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Suppose a bank has $200 million in checking account deposits with no excess reserves and the required reserve ratio is 15%. If the Fed reduces the required reserve ratio to 10%, the bank will now have excess reserves of
A) $0. B) $10 million. C) $20 million. D) $30 million.
A monopolist can sell 10 lunchboxes if he or she charges $10 per lunchbox and 11 lunchboxes if he or she charges $9. The MR from selling the 11th lunchbox is
A. ?$1. B. $1. C. $9. D. $99.
"Left" gloves and "right" gloves provide a good example of
a. perfect substitutes. b. perfect complements. c. negatively sloped indifference curves. d. positively sloped indifference curves.
Suppose that good X has few close substitutes and that good Y has many close substitutes. Which good would you expect to have more price elastic demand?