Suppose the market for cement is such that the government does not interfere in price determination but plays an important role in the provision of property rights
While there are a large number of buyers and sellers, everyone conducts transactions at a common market price. Which of the following statements is true about the structure of the cement market?
A) The cement market is government regulated.
B) All participants in the cement market are price makers.
C) All transactions in the cement market are likely to be involuntary.
D) The cement market is free and competitive.
D
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A decrease in supply means that
a. demand will increase by the same amount b. the quantity supplied increases c. the quantity supplied decreases d. at every price level, the quantity supplied decreases e. the supply curve shifts to the right
If a basket of goods costs $100 in 2015 and the price index rises by 4 percent every year, the same basket would cost _____ in 2020
a. $104 b. $100 c. $121.7 d. $200
A normal good is defined by economists to be a good
a. with a negatively-sloped demand curve. b. that is purchased by at least 75 percent of the population. c. that is bought by consumers with normal tastes. d. whose demand increases when incomes increase. e. whose demand decreases when incomes increase.
In long-run equilibrium for a monopolistically competitive firm, the firm's ________ curve is just tangent to its average total cost curve.
A. demand B. supply C. marginal revenue D. marginal cost