In oligopolistic markets:
a. there are a large number of sellers
b. firms are large relative to the size of the market.
c. there are insignificant barriers to entry.
d. firms have no perceptible influence over the market price.
b
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Refer to the table above. Assume that the market for notebooks is in equilibrium. Which of the following is likely to happen if there is an increase in the school enrollment rate, other things remaining the same?
A) The equilibrium price and quantity remain unchanged. B) Both the equilibrium price and quantity of notebooks decrease. C) Both the equilibrium price and quantity of notebooks increase. D) The equilibrium price increases, but the equilibrium quantity of notebooks decreases.
A higher price level causes us to
A) move up along an aggregate demand curve. B) move down along an aggregate demand curve. C) shift the aggregate demand curve to the right. D) shift the aggregate demand curve to the left.
Who are the only ones not affected by a Pigouvian tax when a negative externality exists in a market?
A. Producers B. Consumers C. Those affected by the externality D. All of these groups are affected when it becomes internalized.
Soup is an inferior good if the demand
a. for soup falls when the price of a substitute for soup rises. b. for soup rises when the price of soup falls. c. curve for soup slopes upward. d. for soup falls when income rises.