The law of demand tells us that
a. the quantity demanded increases as price falls
b. demand increases because price falls
c. people respond to price changes
d. demand creates its own supply, meaning that if there's a demand, supply will be created to satisfy it
e. demand depends on people having income to satisfy it
a. the quantity demanded increases as price falls
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Labor unions and minimum wage laws may create ________ unemployment.
A. cyclical B. frictional C. structural D. environmental
Generating electricity creates air pollution. This industry, if left unregulated, will produce at an inefficient market equilibrium where
A) marginal private cost equals marginal social benefit. B) marginal social cost equals marginal social benefit. C) marginal social cost equals marginal private cost. D) marginal social benefit is greater than marginal social cost.
Entry into a monopolistically competitive industry
A) is relatively easy. B) is very difficult. C) can be easy or difficult, depending on the type of product. D) is about the same as entering a monopoly industry.
As a price setter, a monopoly
a. can establish any price it wants for each output level b. can sell any output level it wants for each price c. is constrained by the market demand curve d. can use its pricing policy to shift the market demand curve e. faces an upward-sloping demand curve for its output