Refer to the above table about a free market of earbuds. When the quantity demanded is 3000 earbuds and the quantity supplied is 1500 earbuds, the market price of earbuds will likely
A. increase to $12.
B. stay unchanged at $10.
C. decrease to $8.
D. decrease to $6.
Answer: A
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Lack of competition in the United States banking industry can be attributed to
A) the fact that competition does not benefit consumers. B) the fact that branching has eliminated competition. C) recent legislation restricting competition. D) nineteenth-century populist sentiment.
When estimating a demand function for a good where quantity demanded is a linear function of the price, you should
A) not include an intercept because the price of the good is never zero. B) use a one-sided alternative hypothesis to check the influence of price on quantity. C) use a two-sided alternative hypothesis to check the influence of price on quantity. D) reject the idea that price determines demand unless the coefficient is at least 1.96.
Which of the following statements is true
a. in market equilibrium there are unconsummated value-creating transactions b. in market equilibrium there are unconsummated wealth-destroying transactions c. in market equilibrium there are no unconsummated wealth-creating transactions d. none of the above
What is marginal cost?
a. the change in total costs resulting from a one-unit change in output b. a per-unit measure of costs that change with the level of output c. an estimate of the per-unit value of the best alternative not pursued d. a cost counted toward economic profits but not accounting profits