Refer to Table 3.1 to answer the following questionTable 3.1 Individual Demand and Supply SchedulesQuantity Demanded byPriceAlejandroBenCarlMarket$8.00842________6.001244________4.002046________2.002246________Quantity Supplied byPriceAveryBrandonCassandra $8.006046________$6.004244________$4.002442________$2.00640________In Table 3.1, if the price is $4, the market will
A. Experience a surplus of 30 units.
B. Experience a surplus of 56 units.
C. Be in equilibrium.
D. Experience a shortage of 22 units.
Answer: C
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In the long-run, a firm in monopolistic competition produces an amount of output that sets
A) P > ATC and MR = MC. B) P > ATC and MR > MC. C) P = ATC and MR = MC. D) P = ATC and MR > MC.
To prevent obesity, the government may establish a tax on high caloric foods, such as twinkies. A twinkie tax will have the smallest impact on quantity demanded when the demand curve for twinkies is
A) perfectly elastic. B) perfectly inelastic. C) more elastic than the supply curve. D) both A and B.
If inventory levels are decreasing, then we should expect business firms to
a. decrease prices. b. decrease output. c. lay off workers. d. increase output.
The Bureau of Labor Statistics (BLS) would calculate the rate of inflation in year 5 by
What will be an ideal response?