If both buyers and sellers expect the price of a commodity to rise in the future, it is likely that the market clearing price ________ and the equilibrium quantity ________
A) will fall, cannot be predicted
B) will rise, cannot be predicted
C) cannot be predicted, will fall
D) cannot be predicted, will rise
B
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The short run for the industry is defined as a period
A. too brief for new firms to enter the industry. B. too brief for old firms to leave the industry. C. in which the number of firms in the industry is fixed. D. All of the responses are correct.
As corn prices rise, salsa sales tend to fall. This an example of:
A. a positive correlation. B. inferior goods. C. two uncorrelated events. D. a negative correlation.
Compared to a perfectly competitive firm with the same cost structure, a monopoly firm will charge a:
a. higher price and sell more. b. lower price and sell more. c. higher price and sell less. d. lower price and sell less. e. similar price and sell the same.
The single biggest federal tax is the
A. estate tax. B. corporate income tax. C. excise tax. D. federal income tax.