What could happen to render the price ceiling set in the graph shown non-binding?
A. Demand could increase, and shift to the right.
B. Demand could decrease, and shift to the left.
C. Supply could decrease, and shift to the left.
D. None of these would cause the price ceiling to be non-binding.
B. Demand could decrease, and shift to the left.
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The shape of marginal cost is determined by
A) the shape of average cost. B) the shape of marginal product. C) the shape of total variable cost. D) all of these choices.
Which statement best describes the two issues economists face when comparing the GDP of different nations?
a. The two issues economists face when comparing the GDP of different nations are natural resources and population. b. The two issues economists face when comparing the GDP of different nations are natural resources and tax codes. c. The two issues economists face when comparing the GDP of different nations are currency and natural resources. d. The two issues economists face when comparing the GDP of different nations are currency and population.
An import restriction ________ the market price and ________ the total surplus of the market.
A. increases; decreases B. increases; increases C. decreases; increases D. decreases; decreases
Because of free entry and exit, firms in a perfectly competitive market cannot earn a profit in the short run.
Answer the following statement true (T) or false (F)