After an increase in the demand for construction workers, the market will attain its new long-run equilibrium faster if
A. people ignore the shortage in the short run.
B. wages are flexible.
C. wages are inflexible, forcing new people to enter the market.
D. unions restrict the number of new construction workers.
Answer: B
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Refer to Table 3-2. The table above shows the demand schedules for cashews of two individuals (Jordy and Amy) and the rest of the market. If the price of cashews falls from $4 to $2, the market quantity demanded would
A) increase by 28 lbs. B) decrease by 36 lbs. C) decrease by 28 lbs. D) increase by 36 lbs.
Regarding the production of health care, more recent studies suggest that economies of scale exist up to a hospital size of approximately 200 beds
Indicate whether the statement is true or false
Appendix: Auctions are used in place of markets when the items traded are unique (e.g., a Ming vase or a right to drill for oil). Which of the following examples are typically sold using Vickrey auction methods?
a. For-sale-by-owner houses b. Household furnishings c. Items sold in Filene's Basement, with the price discounted after a certain date d. Vintage postage stamps
The supply curve reflects the
a. inverse relationship between price and quantity offered b. positive relationship between demand and supply c. negative relationship between price and quantity bought d. positive relationship between price and quantity bought e. positive relationship between price and quantity offered