The law of supply states that, other things constant, there is:
A. an inverse relation between price and the quantity supplied.
B. an inverse relation between price and supply.
C. a direct relation between price and supply.
D. a direct relation between price and the quantity supplied.
Answer: D
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The deadweight loss incurred when the market in the above figure is a single-price monopoly rather than perfectly competitive is the area
A) cab. B) fcd. C) bed. D) fae.
A game in which all the players are better off at the end of the game is a
A) tit-for-tat game. B) dominant strategy game. C) positive-sum game. D) noncooperative game.
Suppose you buy a house for $250,000. One year later, the market price for the house has fallen to $200,000. What is the return on your investment in the house if you made a down payment of 10 percent and took out a mortgage loan for the other 90 percent?
What will be an ideal response?
Assume that the production of a good imposes external costs upon third parties. If the price and quantity of this good is set by supply and demand the price will be too:
a. high and quantity too low for efficient resource allocation. b. low and quantity too low for efficient resource allocation. c. low and quantity too high for efficient resource allocation. d. high and quantity too high for efficient resource allocation.