The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P.If this economy is open to trade, and the world price of a car is $6,000, the domestic quantity demanded will be ________ and quantity supplied will be ________.
A. 14,000; 8,000
B. 12,000; 10,000
C. 12,000; 8,000
D. 8,000; 14,000
Answer: A
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In the money market, if the nominal interest rate is below the equilibrium level,
A) the demand for money curve will shift leftward. B) the quantity of money demanded exceeds the quantity of money supplied. C) the quantity of money supplied exceeds the quantity of money demanded. D) the supply of money curve will shift leftward. E) asset prices will rise.
In the long run, a perfectly competitive market will
A) produce only the quantity of output that yields a long-run profit for the typical firm. B) generate a long-run equilibrium where the typical firm operates at a loss. C) supply whatever amount consumers demand at a price determined by the minimum point on the typical firm's average total cost curve. D) supply whatever amount consumers will buy at a price which earns the market an economic profit.
When did Regulation Q finally disappear?
A) 1934 B) 1945 C) 1986 D) 2000
A deadweight loss decreases in size when a unit of output is produced for which
A. producer surplus exceeds consumer surplus. B. marginal cost exceeds marginal benefit. C. consumer surplus exceeds producer surplus. D. maximum willingness to pay exceeds minimum acceptable price.