A sudden decrease in the market demand in a competitive industry leads to
a. A market equilibrium price higher than the original equilibrium in the short-run
b. A market equilibrium price equal to the original equilibrium in the long-run
c. Both a and b
d. None of the above
b
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In 1970s the federal government imposed price controls on natural gas. Which of the following statements is true?
A) These price controls caused a chronic excess supply of natural gas. B) Consumers gained from the price controls, because consumer surplus was larger than it would have been under free market equilibrium. C) Producers gained from the price controls because producer surplus was larger than it would have been under free market equilibrium. D) This episode of price controls was unusual, because it resulted in no deadweight loss to society.
The typical face value of a corporate bond is $1,000
Indicate whether the statement is true or false
An increase in the price of oil will likely cause which of the following?
A) increase the markup in the Phillips curve equation B) increase the sum "m + z" in the Phillips curve equation C) increase the natural rate of unemployment D) all of the above E) none of the above
The number of seats available in an arena is fixed at 20,000. The equilibrium price for a ticket to a basketball game at the arena is $80. The equilibrium price for a ticket to a hockey game at the arena is $95. Which of the following is true?
A. The demand for hockey games must be more elastic than the demand for basketball games. B. The demand for each hockey game must be higher than the demand for each basketball game. C. The supply of hockey games must be less elastic than the supply of basketball games. D. Basketball games must be more expensive to produce than hockey games.