When a market is in equilibrium, excess demand and excess supply are zero
Indicate whether the statement is true or false
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Suppose Lando Calrissian owns a smuggling business whose total revenue is $30,000 per month. The accompanying table shows Lando's monthly expenses. If Lando weren't a smuggler, he would earn $6,000 per month working for the Rebel Alliance. Apart from pay, Lando is indifferent between working as a smuggler and working for the Rebel Alliance.Fuel$4,000Maintenance$12,000Weapons$6,000Bribes$3,000 In the long run, we would expect Lando to:
A. continue smuggling since his economic profit from smuggling is positive. B. join the Rebel Alliance since his economic profit from smuggling is negative. C. continue smuggling since his accounting profit from smuggling is positive. D. join the Rebel Alliance since his accounting profit from smuggling is negative.
After the price of Revlon nail polish increased, Jen stopped buying Revlon nail polish and started buying a cheaper brand of nail polish instead. This is called:
A. the income effect of a price change. B. a decrease in the seller's reservation price. C. a decrease in the buyer's reservation price. D. the substitution effect of a price change.
Figure 3-3
In , if the initial demand for margarine were D1, the impact of an increase in the price of margarine from $0.35 to $0.40 per pound on consumer purchases would be illustrated as
a.
a shift in the demand curve to D2.
b.
a shift in the demand curve to D3.
c.
a movement upward to the left along the original demand curve D1.
d.
none of the above.
Futura Bank has liabilities of $8 million and net worth of $1,200,000. Futura Bank's assets are
A. $1.2 million. B. $6.8 million. C. $8 million. D. $9.2 million.