When the quantity demanded and quantity supplied in a market are equal, the market is said to be in
a. fixation.
b. excess supply.
c. equilibrium.
d. excess demand.
C
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A lower price elasticity of demand coefficient occurs when:
a. many substitutes exist. b. the quantity demanded is more responsive. c. few substitutes exist. d. the market is broadly defined.
The branch of economic theory that analyzes decisions about education and training is
a. welfare economics. b. equilibrium analysis. c. human capital theory. d. consumption theory.
The general rule for allocating a productive resource efficiently across different production activities of the same product, like fishing boats in the text case example, is to choose the allocation for which the
A. marginal product of the resource is the same in every activity. B. total product of the resource is the same in every activity. C. average product is equal to the marginal product in every activity. D. average product of the resource is the same in every activity.
Resources are efficiently allocated when production occurs at that output level where price:
A. is greater than marginal revenue. B. equals marginal revenue. C. is equal to average variable cost. D. equals marginal cost.