Refer to the information provided in Figure 3.14 below to answer the question(s) that follow.
Figure 3.14Refer to Figure 3.14. If this market is unregulated and the price is currently $30, you would expect that the price of sunglasses would
A. rise to $60, where quantity demanded equals quantity supplied.
B. rise to $90, so the firm could meet its excess demand.
C. remain at $30, because firms would not want to increase the price.
D. rise, but the new price is indeterminate from the information provided.
Answer: A
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Which of the following assumptions of the classical model is the best reason we cannot use it to explain short-run economic fluctuations?
a. Markets never clear in the long run. b. The labor market clears. c. Prices remain constant and supply and demand adjust. d. It does not show how an economy recovers from a recession. e. Government intervention is essential to get markets to clear.
When the U.S. dollar depreciates relative to foreign currencies this means that ______.
a. the value of the U.S. dollar increases b. foreign currencies depreciate relative to the U.S. dollar c. a dollar can buy fewer units of foreign currency than before d. a dollar can buy more units of foreign currency than before
At the end of the populist cycle, workers are better off than they were before the populist cycle began in terms of real wages and job creation
Indicate whether the statement is true or false
Profit is maximized at the output at which marginal revenue exceeds marginal cost by the greatest margin.
Answer the following statement true (T) or false (F)