Whenever any firms in a concentrated industry merge, the four firm concentration ratio ___ and the Herfindahl-Hirschman Index ____:
a. Will rise; will rise
b. Will rise; may rise or stay the same.
c. May rise or stay the same; will rise.
d. May rise or stay the same; May rise or stay the same.
c
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The most populous country of the globe is:
a. India b. China c. Pakistan d. The EU e. United States
An increase in both supply and demand must increase both equilibrium price and quantity.
a. true b. false
A basic assumption used in most economic theories is that:
A. as price decreases, quantity demanded will decrease. B. whatever goes up must come down. C. what is true for a part of the whole must also be true for the whole. D. all other things remain the same.
Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, we would expect that:
A. demand will decrease until quantity demanded equals quantity supplied. B. supply will increase until quantity demanded equals quantity supplied. C. price will increase until quantity demanded equals quantity supplied. D. there will be no change in the price since the market is in equilibrium.