Explain how supply and demand create equilibrium in the marketplace
What will be an ideal response?
At equilibrium, the market for a good is stable. To find the equilibrium price and quantity, simply look for the price at which the quantity supplied equals the quantity demanded.
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The above figure shows a motel engaged in monopolistic competition with other motels. The equilibrium quantity at this motel is ________ rooms per day
A) 200 B) 300 C) 400 D) 500 E) 100
In the absence of property rights, factories will dump waste into a waterway up to the point where ________ equals ________
A) marginal social cost; marginal social benefit B) marginal social cost; marginal private cost C) marginal private cost; marginal private benefit D) marginal private cost; marginal social cost
The World Trade Organization has about ________ members.
Fill in the blank(s) with the appropriate word(s).
The consumer optimum is the set of goods and services, subject to the limited income of the consumer, that
A) the consumer can afford to buy. B) is characterized by zero marginal utility on each good and service. C) maximizes the level of satisfaction for each consumer. D) is characterized by increasing marginal utility.