What happens to equilibrium price when simultaneously the demand curve shifts left and the supply curve shifts right?
A. Equilibrium price will increase.
B. Equilibrium price will decrease.
C. Equilibrium price will remain the same.
D. Equilibrium price may increase, decrease, or remain the same depending on the magnitude of the shifts in demand and supply.
B. Equilibrium price will decrease.
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When competitive market equilibrium determines a level of output for which the marginal social cost exceeds the marginal social benefit, the private equilibrium results in
a. a positive externality b. a Coase equilibrium c. underproduction of the product d. a market failure e. external benefits
Under what conditions is it likely that the labor supply curve may become backward bending? What roles do the income and substitution effects play?
What will be an ideal response?
Refer to the data provided in Table 9.3 below to answer the following question(s). Table 9.3qTFCTVCTCMCAVCATC0$100 $0$100 ---- -- 1100401404040 140 21006016020 30 80 31009019030 30 63.334100124 224 343156 5100180 280 56 36 56 6100 264 364 84 44 60.677100 372 472 108 53.14 67.43Refer to Table 9.3. If the market price is $34, then in the long run the firm will
A. operate and expand. B. operate but not expand. C. shut down, but not go out of business. D. go out of business.
When a market is in equilibrium
A) everyone has all they want of the commodity in question. B) there is no shortage and no surplus at the equilibrium price. C) the number of buyers is exactly equal to the number of sellers. D) the supply curve has the same slope as the demand curve.