Refer to the graph below, showing the long-run supply and demand curves in a purely competitive market. We know that in this market, the marginal:
A. Cost equals marginal benefit at P1Q1
B. Benefit exceeds marginal cost at the output level of Q2
C. Cost exceeds marginal benefit at the output level of Q2
D. Cost equals marginal benefit at all points on the supply curve
B. Benefit exceeds marginal cost at the output level of Q2
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Price elasticity of supply is always
A) positive because of the law of supply. B) negative because of the law of supply. C) positive because of diminishing marginal utility. D) negative because percentages can only be negative.
Merely demonstrating that wages are lower for blacks and females does not in itself prove wage discrimination
a. True b. False Indicate whether the statement is true or false
Other things the same, when the price level rises, interest rates
a. rise, which means consumers will want to spend more on homebuilding. b. rise, which means consumers will want to spend less on homebuilding. c. fall, which means consumers will want to spend more on homebuilding. d. fall, which means consumers will want to spend less on homebuilding.
When the price of compact disc players decreases, the demand for compact discs rises while the demand for cassette tapes decreases. What does this imply about the relationship between compact disc players, compact discs, and cassette tapes?
What will be an ideal response?