In a competitive market the equilibrium price and quantity occur where:
A. consumers and suppliers bargain to a mutually acceptable price.
B. the downsloping demand curve intersects the upsloping supply curve.
C. quantity demanded exceeds quantity supplied or vice versa.
D. the upsloping demand curve intersects the downsloping supply curve.
Answer: B
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National income is derived from gross domestic product by
A) adding personal income and transfer payments to gross domestic product. B) subtracting depreciation from gross domestic product. C) subtracting retained earnings from gross domestic product. D) adding personal taxes and depreciation to gross domestic product.
No currency ever appreciated or depreciated under the Bretton Woods system as it was based on a system of fixed exchange rates
a. True b. False Indicate whether the statement is true or false
Proprietary technology is knowledge that is
a. known but no longer used much. b. known, but only recently discovered. c. known mostly by only those in a certain profession. d. known only by the company that discovered it.
Sketch graph a natural monopoly like a city transportation subway with the typical ATC, MC, and demand and MR functionsA. Label the profit maximizing monopoly price with a P1.B. Label the typical public utility commission regulated price which requires no subsidy as P2.C. Label the socially efficient price as P3.D. Shade in the area of the subsidy required in one of the cases above.E. Explain why a subsidy is often used for public transportation but not for municipal water supply.
What will be an ideal response?