The law of supply states that, other things equal, as the price of a good goes:
A. down, the supply goes down.
B. up, the quantity supplied goes up.
C. down, the quantity supplied goes up.
D. up, the supply goes down.
Answer: B
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The law of diminishing returns
A. applies only to agriculture. B. is another way of stating Parkinson's Law. C. focuses on marginal output. D. explains why mass production leads to lower costs.
Which of the following statements is not true?
A) Consumer surplus measures the difference between the highest price a consumer is willing to pay for a product and the price she actually pays. B) Marginal benefit is the additional benefit to a consumer from consuming one more unit of a product. C) Consumer surplus measures the net benefit from participating in a market. D) Producer surplus measures the total benefit received by producers from participating in a market.
In ________ markets, large oligopolistic firms end up behaving like perfectly competitive firms.
A. monopoly B. contestable C. blocked D. monopolistically competitive
If Simple were able to move first in a sequential version of the game in Scenario 13.15, the equilibrium would be
A) an $80 price for Simple and a $70 price for Boring. B) an $80 price for Simple and a $25 price for Boring. C) a $35 price for Simple and a $70 price for Boring. D) a $35 price for Simple and a $25 price for Boring. E) a mixed strategy equilibrium.