Equilibrium price is the price:
a. from which there is always a tendency to move away
b. where supply equals demand
c. where there is either a surplus or a shortage
d. suppliers agree to charge
e. none of the above
Ans: e. none of the above
You might also like to view...
________ is the process of determining terms of exchange by individual negotiations between a buyer and a seller
A) Backward induction B) Bilateral bargaining C) Arbitration D) Collective bargaining
Blue pens and black pens are close substitutes. The cross elasticity of demand for black pens with respect to the price of blue pens is ________
A) positive B) negative C) equal to 1 D) zero
The short run is the time period
A. In which only the amount of capital may be altered. B. Over which an investment decision can be made. C. In which some costs are fixed. D. Necessary so that profits can be earned from production.
Which of the following statement(s) is (are) true?
A) If the income elasticity of demand for a product is negative, then the good is labeled an inferior good. B) If the income elasticity of demand for a product is greater than 1, then the good is labeled a necessity. C) If the cross-price elasticity of demand between two goods is negative, then the two good are complements. D) Both A and C