If supply and demand both decrease, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. lower; uncertain
B. higher; higher
C. uncertain; lower
D. lower; lower
Answer: C
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Use the figure below to answer the following question.
If the output level is Q2, then there will be
A. minimum net producer surplus. B. greater marginal benefits than marginal costs of the product. C. productive efficiency. D. maximum deadweight losses.
The individual firm operating in a perfectly competitive labor market
A) can hire more labor only by offering a higher wage. B) faces an inelastic demand for labor. C) will pay less to the additional labor employed. D) can buy all the labor it wants at the going market wage rate.
A major drawback of the Keynesian approach to macroeconomic equilibrium is the assumption that the supply of goods and services in the economy always adjusts to aggregate expenditures
a. True b. False Indicate whether the statement is true or false
Price discrimination is related to elasticity because:
A. the firm can increase revenues by charging customers with elastic demands higher prices and charging customers with inelastic demands lower prices. B. the firm can increase revenues by charging customers with elastic demands lower prices and charging customers with inelastic demands higher prices. C. the firm can increase revenues by charging all customers higher prices. D. None of these; elasticity and price discrimination are unrelated.