If the demand decreases in a perfectly competitive market, firms will likely:
A. experience negative profits in the short run.
B. experience zero profits in the long run.
C. exit the market in hopes of capturing profits elsewhere.
D. All of these are true.
D. All of these are true.
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In July, market analysts predict that the price of gold will rise in August. What happens in the gold market in July, holding everything else constant?
A) The demand curve shifts to the left. B) The supply curve shifts to the left. C) The quantity demanded and the quantity supplied increase. D) The supply curve shifts to the right.
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If a new unit excise tax is levied on bottles of wine, the
A) demand for wine shifts to the left. B) demand for wine shifts to the right. C) supply of wine shifts to the right. D) supply of wine shifts to the left.