Over what range of prices does a surplus arise? What happens to the price when there is a surplus?
What will be an ideal response?
A surplus arises at market prices above the equilibrium price. A surplus causes the price to fall, decreasing quantity supplied and increasing quantity demanded until the equilibrium price is attained.
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If a producer is not able to expand its plant capacity immediately, it is
A) operating in the long run. B) operating in the short run. C) losing money. D) bankrupt.
A stockholder who owns 1,000 shares of the corporation’s 100,000 shares is entitled to what percentage of the vote in an election of corporate officers?
A. 1 percent B. 2 percent C. 5 percent D. 10 percent
Which country has the largest net public debt as a percent of GDP?
a. United States b. France c. Japan d. Canada
Why is market definition important for economic decision making?
A. Government regulators are interested in knowing the effect of mergers and acquisitions on competition and prices in a particular market. B A firm will define its market in order to maximize revenue. C. A firm is interested in knowing its actual and potential competitors. D. both A and C E. both A and B