Which of the following occurs when a market is in equilibrium?
A. The price of the good will tend to rise, all else held constant.
B. The price of the good will tend to fall, all else held constant.
C. Quantity supplied is equal to quantity demanded.
D. Quantity supplied is more than quantity demanded to satisfy all consumers.
Answer: C
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The purchase of 500 shares of Honda stock by the California State Employees' Pension fund
A) is counted as consumption expenditure. B) is not counted as part of GDP. C) is counted as investment in the GDP accounts. D) is counted as part of export expenditure in the GDP accounts because Honda is a foreign firm. E) is counted as part of import expenditure in the GDP accounts because Honda is a foreign firm.
In the short run, a profit-maximizing firm's decision to produce should be guided by whether
A) its total revenue exceeds its fixed cost. B) its total revenue covers its variable cost. C) it makes a profit. D) its marginal profit is maximized.
Refer to Figure 14-7. Uniguest, Inc is a company that provides PCs with internet access and touch-sensitive screens to hotels
Suppose the Hard Rock Hotel and Casino in Las Vegas informs Uniguest that it is considering installing these systems in its hotel rooms. The Hard Rock expects to be able to charge higher prices for these rooms if it installs Uniguest's systems in its rooms. The two companies begin bargaining over what price the Hard Rock will pay Uniguest for its systems, and the decision tree shown above illustrates this bargaining game. Note that the profit figures listed in the decision tree are additional profits for the Hard Rock and total profits for Uniguest. a. Suppose the Hard Rock offers Uniguest $1,200 per system. Will Uniguest accept or reject this offer? Why? b. Suppose the Hard Rock offers Uniguest $800 per system. Will Uniguest accept or reject this offer? Why? c. Suppose Uniguest attempts to obtain a favorable outcome from the bargaining by telling the Hard Rock it will reject an $800-per-system offer. If the Hard Rock does not believe the threat is credible, what will it do? Why? What will Uniguest do? Why? d. Is there a subgame-perfect equilibrium in this situation? Explain.
Refer to Figure 8.4. Marginal costs will equal average variable costs at A) two microwave ovens. B) three microwave ovens. C) six microwave ovens. D) an indeterminate level of output from this information.