An effective price ceiling must be set
A. at the equilibrium price.
B. either at or above the equilibrium price.
C. above the equilibrium price.
D. below the equilibrium price.
Answer: D
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La Dila Corp . decided to sponsor an AIDS awareness campaign when it discovered that its rival had been sponsoring several fund-raising events for AIDS-afflicted children. This is an example of ________
A) bounded rationality B) pure altruism C) impure altruism D) consumerism
If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium
A) price of bikes definitely increases. B) price of bikes definitely decreases. C) quantity of bikes definitely increases. D) quantity of bikes definitely decreases.
When labor is substitutable between two markets, we should expect:
A. the two markets to pay the same or similar equilibrium wage. B. those markets to produce substitutable outputs. C. the workers in the two markets to commit to one at the start of their career and stick with it, despite the similarities. D. All of these statements are true.
If the price elasticity of demand for a good is elastic, then consumers are relatively unresponsive with respect to the quantity purchased when the price changes
a. True b. False Indicate whether the statement is true or false