If, ceteris paribus, demand in a perfectly competitive industry increases, the market price for the product will also increase.
Answer the following statement true (T) or false (F)
True
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Assume someone organizes all farms in the nation into a monopoly. As a result, consumer surplus will
A) not change. B) increase. C) decrease. D) either increase, decrease, or not change depending if the monopoly's marginal revenue curve lies below, above, or is the same as its demand curve. E) None of the above answers is correct because the effect on consumer surplus depends on whether the monopoly is a single-price or a price-discriminating monopoly.
The market for smartwatches has begun to grow, due in part to the success of the Apple Watch
Following the successful launch of the Apple Watch in 2015, companies such as Samsung, Sony, and LG have all developed products to compete with the Apple Watch. The smartwatches introduced to compete with the Apple Watch would be considered A) complements to the Apple Watch. B) substitutes for the Apple Watch. C) normal goods compared to the Apple Watch. D) inferior goods compared to the Apple Watch.
Unpriced by-products of production or consumption that impose costs on other consumers or firms are known as
a. negative externalities b. effluent fees c. pollution rights d. positive externalities e. moral hazards
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. area (B + C) gets transferred from consumer to producer.
B. area (B + C) gets transferred from producer to consumer.
C. area B gets transferred from consumer to producer.
D. area B gets transferred from producer to consumer.