When a freely functioning market is in disequilibrium:
a. the government must set a price ceiling.
b. the government must set a price floor.
c. the price and quantities demanded and/or supplied change until equilibrium is established.
d. it will continue to remain in disequilibrium.
e. it will reach equilibrium at a very high/low price.
c
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The correct expression for cost plus pricing is
A) Price = Cost (1 + profit margin). B) Price = Cost + profit margin. C) Price = Cost (1 + mark-up). D) Price = Cost + (1 + mark-up).
For the average homeowner, which of the following tasks is most likely to be contracted for?
a. fixing a shelf b. hanging a painting c. moving furniture d. rewiring the kitchen lighting e. repainting a bedroom
Under a floating exchange-rate system, a country needs to pay more attention to the economic policies of the rest of the world
a. True b. False Indicate whether the statement is true or false
Due to various circumstances, several large firms have most of the sales in an industry. Which term describes this situation?
a. A natural monopoly b. A legal monopoly c. An oligopoly d. A cartel