Assume a price ceiling is imposed at the current equilibrium price in the market for wheat. If the supply of wheat then decreases as a result of bad weather,
a. a surplus of wheat will be created
b. a shortage of wheat will be created.
c. the quantity of wheat traded remains the same.
d. the quantity of wheat supplied will increase.
b
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If the demand for bicycles increases,
a. the quantity demanded decreases b. equilibrium price increases and equilibrium quantity decreases c. equilibrium price decreases and equilibrium quantity increases d. quantity supplied increases e. quantity supplied decreases
Which of the following is a likely result when barren unused land is converted into an area for horseback riding and other recreational activities? a. The supply of similar types of land will fall
b. The price of the land will fall. c. The marginal revenue product of the land will increase. d. The marginal revenue product of the land will decrease.
Refer to the graph shown. If this monopolist were allowed to choose the profit-maximizing level of output, it would charge a price of:
A. $2. B. $12. C. $3. D. $8.
Considering the In the News article "Microsoft Guilty of Monopoly Abuse" antitrust laws attempt to
A. Protect producers from too much competition. B. Protect the government from frivolous lawsuits. C. Increase the profitability of monopolies. D. Prevent the abuse of market power.