Refer to Figure 12-17. Which of the following statements is true?
A) The current market price is $3 but the firm will be able to increase the price in the future.
B) The current market price is $3 but the price will fall in the long run as new firms enter the market.
C) The current market price is $3 but the price will increase in the future as the market demand increases.
D) The current market price is $3 but the price will fall in the long run as a result of a decrease in demand.
B
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The tastes for foreign goods and services generally has a ______ relationship with aggregate expenditure.
A. negative B. positive C. skewed D. constant
One consequence of imperfect information in the health insurance market is that:
A. less healthy individuals are more likely to buy insurance, driving up the cost of insurance for everyone. B. the most healthy individuals are more likely to buy insurance, leaving the least healthy without access to health care. C. health insurance increases the demand for health care and so increases the price of health care. D. unhealthy individuals are denied health insurance.
Wayne did not look for another job after he lost his current job. As a result the
A. labor force immediately decreased. B. unemployment rate remains constant for as long as he does not look for another job. C. labor force increased. D. unemployment rate eventually decreased.
If bond prices decrease, then the:
A. Interest rate decreases B. Interest rate increases C. Transactions demand for money will decrease D. Transactions demand for money will increase