If a price ceiling of $8 were placed in the market in the graph shown:
A. an excess supply of 23 would occur.
B. an excess supply of 15 would occur.
C. an excess supply of 7 would occur.
D. None of these is true.
Answer: D
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If the rate of exchange for a pound is $4, the rate of exchange for the dollar is ________.
A. $0.25 B. 4 pounds C. 1/4 pound D. $1.00
Does the description of inertial inflation rely more on economic or political factors? Explain
What will be an ideal response?
Firms in perfectly competitive markets: a. are price takers
b. are price makers. c. influence price by varying the quality of output. d. sell heterogeneous products.
Since the beginning of the millennium, the United States has witnessed closure of many Internet start-up companies. According to the model of perfect competition, these companies must have shut down in the short run because:
a. the price they were charging was too high to attract customers. b. the price they were charging was too low to provide sufficient revenues. c. they were not earning enough revenue to cover their total costs. d. they were not earning enough revenue to cover their total variable costs. e. they were not earning enough revenue to cover their total fixed costs.