Suppose the equilibrium price for pizza is $5 . If the government sets price at $4, the result would be
a. a shortage because at $4, the quantity demanded would exceed the quantity supplied
b. a surplus because at $4, the quantity demanded would be less than the quantity supplied
c. that the market would remain in equilibrium, but with a larger quantity bought and sold at $5
d. that at $4, the quantity sold would be greater than the quantity bought
e. that at the equilibrium price of $5, fewer units would be sold
A
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What is the real-balance effect of an increase in the price level?
What will be an ideal response?
In the above figure, the marginal cost of the last unit produced by the profit maximizing firm is
A) $5. B) $10. C) $15. D) $20.
The MP curve indicates the relationship between ________ and the ________
A) taxes; price level B) the real interest rate; inflation rate C) monetary policy; IS curve D) all of the above E) none of the above
For a monopoly, marginal revenue for all units greater than 1 is always:
A. less than price because of the price effect. B. more than price because of the price effect. C. more than price because of the quantity effect. D. less than price because of the quantity effect.