Which of the following is true regarding the market for steak shown in Figure 3-1?
a. If the price of steak were $2 per pound, producers would want to supply less steak than
consumers would want to buy.
b. If the price of steak were $4 per pound, producers would want to supply more steak than
consumers would want to buy.
c. If the price of steak were $3 per pound, producers would want to supply the same amount
of steak that consumers would want to buy.
d. All of the above are true regarding the market for steak shown in the figure.
d. All of the above are true regarding the market for steak shown in the figure.
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When a falloff in usage of a product by some consumers causes others to stop purchasing the item there is
A) price leadership. B) negative-sum game. C) positive market feedback. D) negative market feedback.
The government will have to subsidize a natural monopoly in the long run if regulators choose to pursue:
a. marginal cost pricing b. fair-return pricing. c. per se pricing.
A tax on buyers decreases demand
a. True b. False Indicate whether the statement is true or false
Assume the federal government raises taxes (a contractionary fiscal policy). If the tax increase affects AS and AD equally, then real GDP will ________ and the price level will ________
A) decrease; decrease B) increase; be unchanged C) increase; increase D) decrease; be unchanged E) increase; decrease