If shortages or surpluses exist in a market, what helps guide the market back to equilibrium?
a. the invisible hand of competition
b. the visible hand of government
c. economic conservatives
d. economic liberals
a. the invisible hand of competition
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In the figure above, when the price falls from $8 to $7, total revenue
A) increases from $120 to $210 so demand is elastic. B) decreases from $210 to $120 so demand is inelastic. C) increases from $120 to $210 so demand is inelastic. D) decreases from $210 to $120 so demand is elastic. E) increases from $120 to $210, but more information is needed to determine whether demand is elastic, inelastic, or unit elastic.
A firm advertising using an expensive, famous spokesperson is often
A) aimed to raise rivals' costs. B) used to increase the total market demand. C) used to steal customers from rivals. D) used to focus on general problems the product addresses.
What is the short-run Phillips curve and what observations does it make?
In relation to prices that would prevail in an uncontrolled market, prices charged by a black market are usually
a. lower, since it is hard for the sellers to locate buyers. b. lower, since it is hard for the buyers to locate sellers. c. higher, since black marketers expect compensation for the risk of being caught. d. higher, since most people enjoy goods more if they are illegal.