Assume the market for cell phone service is initially in equilibrium. An increase in supply would cause a surplus at the initial equilibrium price
The market adjustment would then involve a decrease in price which would in turn cause quantity demanded to increase and quantity supplied to decrease until equilibrium is reestablished. Indicate whether the statement is true or false
TRUE
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Perfect competition occurs in a market where there are many firms each selling:
A) identical product. B) similar product. C) unique product.
Suppose that a firm's long-run average total costs of producing an individual income tax return is $75 when it produces 1,000 returns and $75 when it produces 1,200 returns. For this range of output, the firm is experiencing
a. economies of scale. b. constant returns to scale. c. diseconomies of scale. d. specialization.
Other things equal, if the wage rates paid to a firm's labor inputs were to rise, we would expect the:
A. AFC, AVC, ATC, and MC curves all to rise. B. AVC, ATC, and MC curves all to rise. C. AFC and ATC curves to fall. D. MP curve to fall.
Use the above table. What percentage of income is received by the poorest 60% of the population?
A. 44.44 percent B. 27.78 percent C. 33.33 percent D. 55.56 percent