Refer to Figure 4-20. At a price of $20, which of the following statements is not correct?
a. The market is in equilibrium.
b. Equilibrium price is equal to equilibrium quality
c. There is no pressure for price to change
d. The quality of the good that is bought and sold is 600 units
Ans: b. Equilibrium price is equal to equilibrium quality
You might also like to view...
Suppose that nominal aggregate demand falls by 4 percent, and at the same time every marginal cost also falls by 4 percent. The importance of menu cost theory is that in this situation the price level ________, meaning that a recession ________
A) must fall by 4 percent as well, does not occur B) must fall by 4 percent as well, must occur C) still might not fall, may not occur D) still might not fall, may occur
This agency is responsible for preventing businesses from engaging in misleading advertising, unfair trade practices, and monopolistic actions, as well as for protecting consumer rights
A) Environmental Protection Agency B) Food and Drug Administration C) Equal Employment Opportunity Commission D) Federal Trade Commission
Members of the EU (European Union):
A) have virtually eliminated all trade barriers within the community. B) have increased trade restrictions among them. C) have made it more difficult to trade with each other. D) no longer trade with North America.
According to the Zuckerberg, Seacrest, and Swift illustration:
A. Zuckerberg, Seacrest, and Swift did not weigh marginal benefits against marginal costs when making decisions. B. Attending college has little effect on lifetime earnings. C. Zuckerberg, Seacrest, and Swift made a mistake by not attending college. D. Opportunity costs vary greatly between individuals and matter in decision making.