If the supply for a product increases, but the demand for the product stays the same, which of the following would happen?
a. There will be a scarcity of the product.
b. There will be an equilibrium of the product.
c. There will be a shortage of the product.
d. There will be a surplus of the product.
d. There will be a surplus of the product.
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In the foreign exchange market, a broker reveals the names of the banks making bids or offers to the trading banks before the trade has been agreed upon
Indicate whether the statement is true or false
Under perfect competition, the demand curve facing the firm is determined by
A) the intersection of the industry demand and supply curves. B) the tastes and preferences of consumers. C) utility maximizing behavior on the part of consumers. D) the willingness of the firm to supply the good.
A monopolist is
A. a firm with the largest annual sales in a country. B. a single supplier of a good for which there is no close substitute. C. a supplier of a good that everyone needs with the result that it makes large profits. D. a large firm that makes all the other firms in the industry do what it wants.
Land and capital are substitutes. If rent goes up and the amount of capital used goes up, we can assume that the
A. output effect outweighed the substitution effect. B. the substitution effect outweighed the output effect. C. the substitution effect and the output effect canceled each other out. D. there is no way to determine the relative weights of the substitution effect and the output effect.