A price ceiling that is set below the equilibrium price
A) causes suppliers to raise their prices.
B) is binding.
C) is non-binding.
D) creates a surplus.
B
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Suppose a duopoly had reached the monopoly outcome and then the first firm increased its production. If the second firm next increases its production, the second firm's profit ________ and the first firm's profit ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) increases; does not change
The current account includes records of a country's
A) net transfers. B) net investment income. C) net exports. D) All of the above are included in an economy's current account.
Technological innovations will cause
a. production to increase but the production possibilities curve to remain unchanged b. the production possibilities curve to shift to the left c. the production possibilities curve to shift to the right d. an economy to operate within its production possibilities curve e. production at a point above or exterior to the production possibilities curve
Exhibit 4-11 Data on supply and demand Bushels demandedper month Price perbushel Bushels suppliedper month 45 $5 77 50 4 73 56 3 68 61 2 61 67 1 57 In Exhibit 4-11, the equilibrium price per bushel of wheat is:
A. $1. B. $2. C. $3. D. $4.