If the price of a good is equal to the equilibrium price,
a. there is a surplus and the price will rise.
b. there is a surplus and the price will fall.
c. there is a shortage and the price will rise.
d. there is a shortage and the price will fall.
e. the quantity demanded is equal to the quantity supplied and the price remains unchanged.
e. the quantity demanded is equal to the quantity supplied and the price remains unchanged.
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Suppose an increase in supply lowers the price from $10 to $8 and increases the quantity demanded from 100 units to 130 units. Using the midpoint method, the elasticity of demand equals
A) 1.17. B) 0.85. C) 0.26. D) 1.56. E) None of the above answers is correct.
Which of the following statements is false?
A. One of the intended effects of the health-care reform bills passed in March 2010 was for some people who had health insurance before the reform to choose to become uninsured after health-care reform. B. One of the provisions of the health-care reform bills passed in March 2010 is that individuals will be fined for not buying insurance. C. Among the provisions in the health-care reform bills passed in March 2010 is that insurance companies are prohibited from turning down a person with a preexisting disease. D. One of the objectives of the health-care reform bills passed in March 2010 was to bring more people into the pool of insured persons so that insurance policies would become cheaper.
In the short run, the marginal cost curve crosses the average total cost curve at
a. a point just below the average fixed cost curve. b. the minimum point on the average total cost curve. c. the maximum point of the average variable cost curve. d. all of the above points.
Which of the following provides the strongest evidence that a firm operating in the highly competitive retail sector is supplying goods and services that consumers value highly relative to their cost?
a. The top-level managers of the firm are paid high salaries. b. The firm is on the verge of bankruptcy. c. The firm is a large corporation. d. The firm is highly profitable, and its sales have grown rapidly.