An increase in supply will have what effect on equilibrium price and quantity?
a. Price will increase; quantity will decrease.
b. Price will decrease; quantity will increase.
c. Both price and quantity will increase.
d. Both price and quantity will decrease.
b
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A share of Apple stock has a price of $430 and gives $43 of Apple profit to its owner. The interest rate on this share is
A) 10 percent. B) $430. C) 15.4 percent D) $43.
Misty spends her entire weekly allowance of $15 on two goods: T-shirts (which cost $10 each) and lipstick (which costs $5)
What is the opportunity cost of a T-shirt? If her parents raise her allowance to $20 per week, what happens to the opportunity cost of a T-shirt?
Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-2, if the market is in equilibrium, then total surplus is represented by
A. BGHF B. CBEFDA C. CBEA D. AEFD
A positive effect of advertising for society is that it:
A. provides useful information to reduce search cost for consumers. B. raises barriers to entry into the industry and protects existing firms. C. creates price leadership and gives firms guidance in dealing with rivals. D. increases market share for the dominant firm in the industry.