A market characterized by asymmetric information will have an equilibrium price if at that price
a. quantity demanded equals quantity supplied when all participants have the same information.
b. quantity demanded equals quantity supplied given prevailing information levels.
c. quantity demanded equals quantity supplied under perfect information.
d. quantity demanded exceeds quantity supplied if suppliers are better informed (and vice versa).
b
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Suppose the price of movies seen at a theater rises from $12 per couple to $20 per couple. The theater manager observes that the rise in price causes attendance at a given movie to fall from 300 persons to 200 persons
What is the arc price elasticity of demand for movies? A) 0.5 B) 0.8 C) 1.0 D) 1.2
Considering the living arrangements of children in one-parent families, less than 10% of these were father only in 2005
Indicate whether the statement is true or false
The questions that an economic system attempts to solve include
A) what to produce. B) how to produce items. C) for whom items are produced. D) all of the above.
Which of the following statements about taxation is TRUE?
A. Dynamic tax analysis assumes that an increase in taxation will leave the tax base unchanged. B. Increasing taxes will always increase tax revenues. C. Static tax analysis recognizes that an increase in taxation could lead to a decrease in tax revenues. D. There is a tax rate at which tax revenues are maximized.