Refer to the above figure. Excess quantity demanded will exist when
A. quantity demanded equals 3.
B. the price equals $10.
C. the price equals $6.
D. the price is between $0 and $6.
Answer: D
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This factor contributes to the winner's curse
a. your estimate of the value of the object was not the most optimistic b. your bid was not the highest c. there were not many other bidders you had to beat out d. you shaded your bid a lot
Each firm knows where its MR = MC output level is located
Indicate whether the statement is true or false
Use the following demand and supply functions: Demand:Qd = 900 - 60PSupply: Qs = -200 + 50PEquilibrium price and output are
A. P = $20 and Q = 150. B. P = $10 and Q = 300. C. P = $100 and Q = 5,300. D. P = $7 and Q = 480.
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A