Refer to the figures. The market is characterized by demand curve D2 and supply curve S1. The firms in the industry are earning ________, which will cause the______________.
Fill in the blank(s) with the appropriate word(s).
Ans: profit; supply curve to shift to S2
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If you own a $1,000 face value bond with one year remaining to maturity and a five percent coupon rate and new bonds are paying 12 percent, what is the most you can get for your old bond?
A) $1,120 B) $1,000 C) $937.50 D) impossible to determine without additional information
A private good is characterized by excludability and depletability
a. True b. False Indicate whether the statement is true or false
Suppose that two things happen simultaneously that impact the equilibrium in the computer software market. First, technological innovation lowers the cost of producing computer software. Second, the price of computer hardware, a complement for computer software, declines. How would you expect these events to change the equilibrium in the computer software market?
a. The demand would decrease and supply would remain unchanged, resulting in a lower market equilibrium price and quantity. b. The supply would decrease and the demand would increase, resulting in a higher market equilibrium price and an indeterminate change in market equilibrium quantity. c. Both supply and demand would increase, resulting in an increase in equilibrium quantity and an indeterminate change in price. d. Both supply and demand would increase, resulting in a decrease in equilibrium quantity and a decrease in price.
The condition that exists when all markets in an economy are in simultaneous equilibrium is known as
A. Pareto efficiency. B. partial equilibrium. C. general equilibrium. D. market equity.