Refer to the information provided in Figure 3.14 below to answer the question(s) that follow.
Figure 3.14Refer to Figure 3.14. If this market is unregulated and the price is currently $30, you would expect that the price of sunglasses would
A. rise to $90, so the firm could meet its excess demand.
B. remain at $30, because firms would not want to increase the price.
C. rise to $60, where quantity demanded equals quantity supplied.
D. rise, but the new price is indeterminate from the information provided.
Answer: C
You might also like to view...
According to the "self-correcting mechanism" in the AD-AS framework, ________
A) the aggregate demand curve shifts up or down as needed to bring the economy to full employment B) the inflation rate changes as needed to move the economy along the short-run aggregate supply curve until output is at potential output C) the long-run aggregate supply curve shifts until it intersects both the aggregate demand and short-run aggregate supply curves at a single point D) inflation and expected inflation are unaffected by deviations of output from potential output E) none of the above
In a fixed exchange rate regime, the value of a currency is pegged to ________
A) an anchor currency B) a currency board C) a dirty float D) an interest rate standard such as the Treasury bill rate in the U.S.
Taking action to reveal one's own private information is called:
A. screening. B. signaling. C. statistical discrimination. D. proofing.
Consider two individuals, Celia and Sondra, who produce bracelets and pendants. Celia's and Sondra's hourly productivity are as follows:?Bracelets /hourPendants /hourCelia41Sondra102Who has the absolute advantage or comparative advantage in the production of bracelets or pendants?
What will be an ideal response?