Gains from trade will be possible as long as
A) levels of utility differ.
B) utility functions differ.
C) marginal rates of substitution differ.
D) endowments differ.
C
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If the demand for a good decreased, what would be the effect on the equilibrium price and quantity?
a. Price would increase, and quantity would decrease. b. Price would decrease, and quantity would decrease. c. Price would increase, and quantity would increase. d. Price would decrease, and quantity would increase.
The equation for determining real GDP for year X is:
a. b. x 100 c. - 100 d. x 100
If the market price of a good is more than the opportunity cost of producing it,
a. the situation will remain unchanged as long as supply and demand remain in balance. b. the market price of the product will increase in the long run. c. resources will flow away from production of the good, causing supply to decline with the passage of time. d. producers will increase supply in the long run.
Suppose the market for grass seed can be expressed as Demand: QD = 100 - 2p Supply: QS = 3p At the market equilibrium, calculate the price elasticities of supply and demand. Use these numbers to predict the change in price resulting from a specific tax
What will be an ideal response?