In a market with a binding price control,
a. there is an imbalance between the quantity supplied by sellers and the quantity demanded by buyers.
b. the costs of production are fully reflected in the price paid
c. the price observe reflects the scarcity of the good.
d. all of the above are true.
a
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Which of the following is true?
a. in recent decades, the rich countries of the world have consistently grown more rapidly than poor countries. b. no LDC was able to achieve a more rapid growth rate than the United States during the 1980 through 2005 period. c. during recent decades, most LDCs have stagnated economically. d. during 1980 through 2005, the fastest growing countries in the world were mostly LDCs.
Chad is willing to pay $5.00 to get his first cup of morning latté; he is willing to pay $4.50 for a second cup. He buys his first cup from a vendor selling latté for $3.75 per cup. He returns to that vendor later in the morning to find that the vendor has increased her price to $3.90 per cup. Chad buys a second cup. Which of the following statements is correct?
a. Chad's willingness to pay for his second cup of latté was smaller than his willingness to pay for his first cup of latté. b. Chad's consumer surplus on his second cup of latté was larger than his consumer surplus on his first cup of latté. c. Chad is irrational in that he is willing to pay a different price for his second cup of latté than what he is willing to pay for his first cup of latté. d. Chad places a higher value on his second cup of latté than on his first cup of latté.
The theory that quantity supplied and price are positively related, other things constant, is referred to as the law of:
A. demand. B. supply. C. profit maximization. D. opportunity cost.
The table shows the initial aggregate supply and demand data for a country. If input prices rise and AS shifts to the left by 2,500 units at each price level, what output level will equal the new equilibrium price?
