If demand increases and supply decreases, the change in the equilibrium price will be ________, and the change in the equilibrium quantity will be ________.
A. uncertain; positive
B. positive; uncertain
C. positive; negative
D. positive; positive
Answer: B
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Discrimination based upon the quantity consumed is referred to as ________ price discrimination
A) first-degree B) second-degree C) third-degree D) group
A situation in which there is a reduction in quantity supplied to zero when there is the slightest decrease in price is
A. perfectly elastic demand. B. perfectly elastic supply. C. perfectly inelastic demand. D. perfectly inelastic supply.
The difference in prices for first-class and coach airline tickets exemplifies price discrimination.
Answer the following statement true (T) or false (F)
Which of the following occur in the long-run equilibrium for the firm and the industry under perfect competition?
a. Firms produce output where price equals marginal cost, which also corresponds to where marginal cost intersects long-run average cost. b. Firms produce output where total revenue is maximized. c. Firms earn positive economic profits. d. Firms produce output where price equals average fixed cost, which also corresponds to where marginal revenue intersects marginal cost.