In the supply and demand model, prices
a. are controlled by the government.
b. show equilibrium.
c. are signals about the value and availability of the good.
d. are the cost of production.
c. are signals about the value and availability of the good.
You might also like to view...
The purpose of expansionary monetary policy is to increase ________.
A. real GDP B. the GDP gap C. interest rates D. the inflation rate
The table above shows Tom's total utility from milkshakes and sodas. Tom's total budget for milkshakes and sodas is $20.00 per week. Milkshakes cost $2.00 each and sodas cost $1.00 each
What quantity of sodas does Tom purchase at his consumer equilibrium? A) five B) six C) seven D) eight
In the figure below, spending $1 million on advertising increases the demand from D0 to D1. What is the marginal benefit of the advertising?
A) $90 million
B) $1 million
C) $80 million
D) None of the above answers are correct.
If transaction costs of market exchange are small, then a firm will expand to produce more of its product internally
a. True b. False