Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3, what changes in the market would result in an economically efficient output?
A) The quantity supplied would decrease, the quantity demanded would increase, and the equilibrium price would decrease.
B) The price would decrease, quantity demanded would increase, and quantity supplied would decrease.
C) The price would decrease, the quantity supplied would increase, and the quantity demanded would decrease.
D) The price would decrease, the demand would increase, and the supply would decrease.
B
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When opening a print shop you need to buy printers, computers, furniture, and similar items. Economists call these expenditures
a. capital investment. b. investment in human capital. c. business consumption expenditures. d. personal saving.
market
What will be an ideal response?
The level of total spending is the immediate determinant of the:
A. ratio of private to public goods production. B. level of real output and employment. C. inflation rate. D. size of the labor force.
Charging different prices to different buyers for different products is called price discrimination.
Answer the following statement true (T) or false (F)