How is the equilibrium price determined? What happens if the price is above the equilibrium price? What happens if the price is below the equilibrium price?
What will be an ideal response?
The equilibrium price is determined by the point where the demand curve and the supply curve intersect. At this point, quantity demanded and quantity supplied are equal. At a price greater than the equilibrium price there is an excess quantity supplied, or surplus since an increase in price leads to a reduction in the quantity demanded but an increase in quantity supplied. At a price below the equilibrium price there is an excess quantity demanded or shortage.
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What is the name of the monopolist having a declining long-run average cost throughout the market?
a. Monopolistic competition. b. Monopoly by legal barrier. c. Natural monopoly. d. Contrived monopoly.
Let's be careful about defining our terms properly. Aggregate supply is the total value of
a. goods produced in the manufacturing sector that they are willing and able to supply at varying price levels b. goods and services that firms in the economy are willing and able to supply at varying price levels c. services that suppliers are willing and able to supply at varying price levels d. goods and services less the amount exported that firms are willing and able to supply at varying price levels e. goods and services including imports that firms are willing and able to supply at varying price levels
In countries where women are discriminated against, policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate
a. True b. False Indicate whether the statement is true or false
Xavier produces and sells tomatoes in a purely competitive market. This implies that Xavier's marginal revenue from an extra unit of tomatoes is always equal to the:
A. Unit price B. Average cost C. Variable cost D. Unit profit