Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound. What takes place?
A) There is a shortage, so the price rises and quantity demanded increases.
B) There is a shortage, so the price falls and quantity demanded increases.
C) There is a surplus, so the price falls and quantity demanded increases.
D) There is a shortage, so the price falls and quantity demanded decreases.
E) There is a shortage, so the price rises and quantity demanded decreases.
E
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One of the necessary conditions for price discrimination to occur is that:
a. buyers in different markets have different elasticities of demand. b. the demand curve is upward sloping. c. buyers must be allowed to resell the good at a higher price elsewhere. d. all of these are necessary for price discrimination to occur.
Which of the following statements about money is not true?
A. There is an opportunity cost of holding money. B. Present dollars are worth more than future dollars. C. Income-earning investment opportunities exist. D. When interest rates are positive, future dollars are more valuable than present dollars.
Which of the following is the best example of a perfectly competitive market?
A.) The automobile industry. B.) The soft drink industry. C.) Dairy farming. D.) Fast-food restaurants
The presence of discouraged workers may cause:
A. GDP to be too large. B. the employment rate to be understated. C. the unemployment rate to be overstated. D. the unemployment rate to be understated.