Refer to Figure 3-6. The figure above represents the market for coffee grinders. Assume that the price of coffee grinders is $50. At this price,
A) there is a surplus equal to 90 coffee grinders that will be eliminated when the price falls to $25.
B) the supply exceeds the demand by 90. Some producers will have an incentive to offer to sell coffee grinders at a lower price.
C) there is a surplus equal to 90 coffee grinders and the price of coffee grinders will fall until demand is equal to supply.
D) the quantity supplied exceeds the quantity supplied by 100. The price will eventually fall to $25 where quantity demanded will equal quantity supplied.
A
You might also like to view...
The level of the capital—labor ratio that maximizes consumption per worker in the steady state is known as the
A) Solow residual capital—labor ratio. B) Golden Rule capital—labor ratio. C) q theory capital—labor ratio. D) dynamically efficient capital—labor ratio.
Considering perfect competition, monopolistic competition, and monopoly, which of the market structures features entry in the long run?
Refer to the figure below. The socially optimal quantity in this market is ________ units per day.
A. T B. W C. V D. U
OLI theory is a direct contradiction of trade theory, especially trade theory based on comparative advantage
Indicate whether the statement is true or false