Which of the following statements is incorrect?
A. Changes in the composition of the population affect the demand for a product.
B. As a greater fraction of the population becomes elderly, the demand for medical services will tend to increase.
C. As the population rises, the market demand curve shifts to the right.
D. None of the statements associated with this question are incorrect.
Answer: D
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A consumer values a car at $30,00 . and a producer values the same car at $20,000 . If the transaction is completed at $24,000 . the transaction will generate:
a. No surplus b. $4,00 . worth of seller surplus and unknown amount of buyer surplus c. $6,00 . worth of buyer surplus and $4,00 . of seller surplus d. $6,00 . worth of buyer surplus and unknown amount of seller surplus
Briefly describe the significance of equilibrium output and price on consumer and producer surplus.
What will be an ideal response?
Recall the Application about food and drink pricing during "happy hour" at bars and restaurants to answer the following question(s).Recall the Application. In a market subject to monopolistic competition, a restaurant's rational response to more elastic demand is to increase its price.
Answer the following statement true (T) or false (F)
Which of the following is always TRUE in the short run for a perfectly competitive firm that is maximizing economic profits?
A. P = d = MR = MC = AVC B. MR = MC = Q C. P = d = MR = MC D. P = d = MR = Q