Indicate whether the statement is true or false.
Steel producers offer to sell steel to U.S. auto producers at a much lower price than in the past. As a result one would expect:
a. no change in the supply of automobiles
b. an increase in the demand for automobiles.
c. an increase in the supply of automobiles.
d. a decrease in the supply of automobiles.
c
Economics
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Answer the following statement(s) true (T) or false (F)
1. If a model is based on unrealistic assumptions, then it cannot be robust. 2. Equilibrium conditions are used to analyze the desirability of economic outcomes. 3. A Nash equilibrium is one in which each individual optimizes taking market prices as given. 4. Efficiency is one common criterion that economists use to judge whether or not an outcome is desirable. 5. Even if an economic model is not detailed enough to give numerical predictions, it might still be useful if it can indicate the direction of change in economic variables.
Economics
Rent controls generally provide the tenants the most efficient housing choice in the long run and maximize economic welfare.?
Economics
Which of the following is NOT a characteristic of a perfectly competitive market?
A. Each firm in the market sells a somewhat different variant of the good. B. There are many sellers, each of which sells only a small fraction of the total quantity exchanged. C. Sellers can easily buy and sell the productive resources needed to enter the market. D. Buyers and sellers are well-informed.
Economics
A decrease in the price of bubble gum below equilibrium will
A. Cause a surplus of bubble gum. B. Shift the bubble gum demand curve to the right. C. Shift the bubble gum supply curve to the right. D. Cause a shortage of bubble gum.
Economics