List and describe the two major jobs performed by price
Prices serve as: (1 ) a rationing device and (2 ) a means of transmitting information. Since wants are unlimited and resources are limited, scarcity exists which requires a rationing device to determine who will be able to purchase the resource or good. If a buyer can pay the price of a resource (or good), then they can purchase it, if not they will not be able to purchase it. Price also serves to transmit information since an increase in price conveys that the item in question has become relatively scarcer.
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Recent evidence supports the belief that new information is incorporated into the value of most stocks within
a. one trading day. b. one week. c. one month. d. about 30 seconds.
Because the price elasticity of supply for jumbo jets is 0.35, the supply of jumbo jets is
A) elastic. B) unit elastic. C) inelastic. D) perfectly elastic. E) perfectly inelastic.
One reason why the "fast-casual" restaurant market is competitive is that
A) consumption takes place in public. B) demand for "fast -casual" food is very high. C) it is trendy and therefore is likely to have a customer following. D) barriers to entry are low.
Individual demand curves are summed horizontally to obtain the market demand curve
a. True b. False Indicate whether the statement is true or false