In Table 9.4, Market 3 would be in equilibrium if buyers believed plums accounted for:
A. 11.11% of the market.
B. 22.22% of the market.
C. 33.33% of the market.
D. 66.67% of the market.
Answer: C
You might also like to view...
If Alex uses $800 from her checking account to pay her credit card balance, her wealth:
A. does not change. B. decreases by $800. C. increases by $800. D. increases by $1,600.
According to your textbook, the notion of price "gouging" is problematic because
A) the higher prices are normally the result of decreases in supply and increases in demand. B) economists believe higher prices are always better than lower prices. C) economists want businesses to make high profits. D) None of the above.
Figure 17.1 depicts a firm's marginal revenue product curve. If the product price is $2, what is the marginal product of the 30th hour of labor?
A. 5 units B. 6 units C. 7 units D. 8 units
Three individuals have $1000 and identical preferences for gum, g, and cigarettes, s, as measured by the utility function U(g,s) = 10g0.9s0.1. The price of gum is $9 and the price of cigarettes is $12. What is the market surplus/shortage at a price of $12 when the supply of cigarettes is 5?
A) There will be a shortage of 3 cigarettes. B) There will be a surplus of 3 cigarettes. C) There will be a shortage of 2/3 cigarettes. D) There will be a surplus of 2/3 cigarettes.