A price above the equilibrium price will:
A) result in quantity supplied being less than quantity demanded.
B) result in a shortage.
C) create pressure for price to fall.
D) tend to rise over time.
Answer: C) create pressure for price to fall.
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Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900. You may find it easier to answer the following questions if you fill in the payoff matrix below. 
width="383" />For Joe, keeping his price at $3 per gallon is a: A. profit-maximizing strategy. B. revenue-maximizing strategy. C. dominant strategy. D. dominated strategy.
As price decreases along a linear demand curve, price elasticity of demand decreases
a. True b. False
Barter can best be defined as:
a. the direct exchange of one good for money. b. the direct exchange of money for a good. c. the direct exchange of goods and services without the use of money. d. the direct exchange of labor services for wages. e. the payment of interest on a savings account.
Which of the following is the calculation that tells us the proportion of trade in each product involving both imports and exports?
a. the index of overlapping production b. the index of effective trade c. the index of intra-industry trade d. the index of displacement