Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $1, what changes in the market would result in an economically efficient output?
A) The price would increase, the quantity supplied would increase, and the quantity demanded would decrease.
B) The price would increase, quantity demanded would increase, and quantity supplied would decrease.
C) The quantity supplied would increase, the quantity demanded would decrease, and the equilibrium price would increase.
D) The price would increase, the demand would increase, and the supply would decrease.
A
You might also like to view...
State and local governments spend about ________ of their expenditures on education
A) 14 percent B) 74 percent C) 59 percent D) 34 percent E) 19 percent
A ________ is an extensive -form representation of a game
A) payoff matrix B) game tree C) Nash equilibrium D) pure strategy
By selecting a bundle where MRS = MRT, the consumer is saying
A) "I value my last unit of each good equally." B) "I am willing to trade one good for the other at the same rate that I am required to do so." C) "I will equate the amounts spent on all goods consumed." D) All of the above.
The cost disease of the service sector is evidenced by
a. a failure of the market mechanism. b. increased quality of public and private services. c. dramatic increases in municipal budget burdens for education, health care, and police and fire protection. d. the increased productivity in the services area.