A seller in a competitive market
a. can sell all he wants at the going price, so he has little reason to charge less.
b. will lose all his customers to other sellers if he raises his price.
c. considers the market price to be a "take it or leave it" price.
d. All of the above are correct.
d
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An open market operation occurs when ________ buys or sells securities ________
A) the Federal Reserve System; from or to the federal government B) the Federal Reserve System; in the open market C) a commercial bank; from or to the federal government D) a commercial bank; from or to the public
How is the impact of expansionary fiscal policy different in an open economy than in a closed economy?
What will be an ideal response?
Suppose Exxon-Mobil announces that its profits in the third quarter of 2013 were $40 billion. This will cause the price of Exxon-Mobil stock to
A) rise. B) fall. C) remain unchanged. D) rise, fall, or remain unchanged depending on the expectations of market participants before the announcement.
This graph shows elasticity of demand because the distance between Q1 and Q2 is ______ the distance between P1 and P2.
a. greater than
b. less than
c. the same as
d. irrelevant to