Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.
Figure 3.19Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2 and there is an excess demand of 6 cheeseburgers, the price of cheeseburgers will have
A. remained constant at $5.00.
B. moved from $7.00 to $5.00.
C. moved from $5.00 to $7.00.
D. remained constant at $7.00.
Answer: A
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The purchase by an individual or firm of stock or bonds issued in another country is called
A) foreign exchange arbitrage. B) foreign portfolio investment. C) global stock exchange. D) foreign direct investment.
A legal monopoly is defined as a market where
A) only one lawyer operates. B) a legal barrier to entry exists. C) only one firm could earn a profit. D) entry and exit are legal.
The above figure shows the cost curves for a typical firm in a competitive market. If price = 8.5, then
A) the firm will produce 10 units. B) the firm will produce 55 units. C) the firm will earn positive profits. D) None of above.
Suppose that, at an official ticket price of $480, there are 6,000 Justin Timberlake fans wanting to attend his concert, but only 4,000 ticketed seats are available. Which one of the following statements is then TRUE?
A) There will be scalpers outside the arena selling tickets for $480. B) There will be a surplus of tickets. C) The market clearing price of the tickets is less than $480. D) The market clearing price of the tickets is more than $480.