Suppose that when the price of oranges is $3 per pound, the quantity demanded is 4.7 tons per day and the quantity supplied is 3.9 tons. In this case:
A. excess demand will lead the price of oranges to rise
B. excess supply will lead the price of oranges to rise
C. excess supply will lead the price of oranges to fall
D. excess demand will lead the price of oranges to fall
Answer: A
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Hubert's Copy Services is in perfect competition. Hubert currently charges 10 cents per page, which is the going market price. He thinks that he can increase his profit by raising the price. Is it possible? Why or why not?
What will be an ideal response?
Merit goods are
a. goods that everyone wants b. goods that are rewards for appropriate behavior c. the same as public goods d. goods that some people think we need more of e. only produced by the government
Refer to the above diagram, in which S1 and D1 represent the original supply and demand curves and S2 and D2 the new curves. In this market:
A. the new equilibrium price and quantity are both greater than they were originally. B. point M shows the new equilibrium position. C. an increase in demand has been more than offset by an increase in supply. D. the equilibrium position has shifted from M to K.
A. it is the most environmentally friendly way to produce goods. B. least-cost production techniques use the smallest total quantity of resources. C. competitive pressures in the market will drive out higher-cost producers. D. the government
provides tax credits and subsidies to low-cost producers. A. it is the most environmentally friendly way to produce goods. B. least-cost production techniques use the smallest total quantity of resources. C. competitive pressures in the market will drive out higher-cost producers. D. the government provides tax credits and subsidies to low-cost producers.