If demand increases and supply decreases, what is the effect on equilibrium price and equilibrium quantity?
A) The price falls and the quantity might increase, decrease, or remain the same.
B) The price rises and the quantity might increase, decrease or remain the same.
C) The quantity decreases and the price might rise, fall, or remain the same.
D) The quantity increases and the price might rise, fall, or remain the same.
B
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Suppose the optimal amount of X is 100 units and that the market provides 123 units. This situation is descriptive of
A. externality provision. B. market failure. C. asymmetric information. D. a public goods problem. E. the free-rider dilemma.
The Homestead Act was passed in 1862 . However, only about 20 percent of newly-added farm land between 1870 and 1900 belonged to homesteads because
a. Americans were more interested in moving to cities than to homesteads. b. the available land was best suited for grazing livestock, but 160-acre plots were too small to do so profitably. c. a treaty between the U.S. government and Native Americans prevented homesteaders from acquiring most of the land. d. homestead filing fees were gradually increased during this time period.
Suppose a sandwich shop currently employs four workers and the shop produces 12 sandwiches an hour. A fifth worker gets hired and the shop now produces 15 sandwiches per hour. Which of the following is true?
A. The marginal product of the fifth worker is three sandwiches. B. The total product of the sandwich shop is now 27 sandwiches. C. Diminishing marginal product has set in. D. All of these are true.
Under perfect competition
a. the only major difference between firms is the mark-up they use to determine prices b. a single seller sets the price c. a small number of sellers offer a differentiated product d. sellers offer a standardized product e. a small number of buyers and sellers negotiate the market price