The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. Suppose the economy is closed. The equilibrium price of a car is ________ and equilibrium quantity is ________.
A. $8,000; 12,000
B. $12,000; 8,000
C. $6,000; 14,000
D. $10,000; 10,000
Answer: D
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A teenager plays his radio loudly at the beach. What can we conclude?
A) He creates a negative externality if it unintentionally annoys or upsets others. B) He creates a positive externality if it unintentionally benefits others who enjoy the same music. C) He creates no externality, if others remain unaffected by the music. D) All of the above.
The sum of the squared values of market shares of firms in an industry is referred to as the:
A. Concentration ratio B. Herfindahl index C. Variance value D. Antitrust index
Frictional and structural unemployment both exist when
A) the economy is at the peak of the business cycle. B) the economy is in long-run equilibrium. C) the economy is in an expansionary phase. D) the economy is in short-run equilibrium.
If a firm in the U.S. wants to purchase 50,000 yuan worth of raw materials from a Chinese firm, how many dollars would it have to transfer to the firm? Assume that one dollar exchanges for 6 yuan in the foreign exchange market
A) $8333.33 B) $7,500 C) $6,773.21 D) $9,663.22