Assume the wool industry is perfectly competitive. The market demand curve for wool is ________ and each individual wool producer's demand curve is ________.
A. horizontal; horizontal
B. downward sloping; downward sloping
C. downward sloping; horizontal
D. horizontal; downward sloping
Answer: C
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Relative to before the price ceiling, how much surplus do producers lose because of the ceiling?
The following questions refer to the accompanying diagram which shows the effects of a price ceiling. The initial price and quantity are P0 and Q0, respectively, and the price ceiling is imposed at the price P1. Assume that none of the potential deadweight loss can be avoided.
a. Area D + E + H
b. Area D + E
c. Area D + E + F
d. Area H.
From Figure 8-5, one can deduce
A. TR = TC at outputs 10 and 60. B. MR = MC at output 35. C. TFC = 100. D. All of the responses are correct.
In a closed economy, the goods market is in equilibrium when
A) Y = S + I + G. B) C + S = I + G. C) C + I = S + G. D) Y = C + I + G.
In general, the medium voter model can be described as a powerful model for _____
a. analyzing demand for public goods b. analyzing the dynamics of business cycles c. analyzing demand aggregation in a democracy d. analyzing the supply of politicians