A binding price ceiling may not help all consumers, but it does not hurt any consumers
a. True
b. False
Indicate whether the statement is true or false
False
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A reduction in production costs will result in a(n):
a. rightward shift of the supply curve. b. increase in supply. c. greater willingness and ability of producers to supply a larger quantity at any given price. d. greater willingness and ability of producers to supply the same quantity at a lower price. e. all of these.
Which of the following would lead to a decrease in the supply of crude oil?
A) Favorable tax breaks for oil companies B) An increase in the demand for crude oil C) An increase in the price of gasoline D) Both A and C. E) None of the above.
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
If the market supply curve is given by S3, then we would expect firms to:
A. shut down in the short run. B. exit the market in the long run. C. enter the market in the long run. D. neither exit nor enter the market in the long run.
If demand is perfectly elastic, the price elasticity of demand is equal to:
A. 1. B. 0. C. infinity. D. a positive number between 0 and infinity.