Suppose both supply and demand increase. What effect will this have on the equilibrium quantity?
A. It may rise or fall.
B. It will rise.
C. It will remain the same.
D. It will fall.
Answer: B
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Explain why the price doesn't change when a market is in equilibrium
What price would an individual be willing to pay today for a stock he/she expects can be sold for $200 one year from now, if the individual has a discount rate of 6% (.06) and the stock pays an annual dividend of $7.50?
What will be an ideal response?
Which of the following is not a precondition for price discrimination?
A. The commodity involved must be a durable good. B. The good or service cannot be profitably resold by original buyers. C. The seller must be able to segment the market, that is, to distinguish buyers with different elasticities of demand. D. The seller must possess some degree of monopoly power.
With an average cost pricing rule, the quantity produced by the natural monopoly is ________ the quantity produced with a marginal cost pricing rule
A) greater than B) less than C) equal to D) greater than in the long run and less than in the short run than E) not comparable to