When there is a surplus in a market, prices are likely to fall because:
A.) Buyers do not wish to buy as much as sellers want to sell.
B.) Some buyers will offer to pay a higher price, initiating a move up the supply curve.
C.) Sellers are likely to increase their production.
D.) Buyers will wait for the government to establish a price floor.
D.) Buyers will wait for the government to establish a price floor.
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When firms leave a perfectly competitive market, then, other things remaining unchanged:
a. the market supply will decrease but the market price will rise. b. both the market supply and the market price will fall. c. both the market demand and the price will increase. d. the market demand will decrease but the market price will rise. e. both the market demand and the market supply will decrease.
Characteristics of a monopolistically competitive market include all of the following except: a. some influence over price. b. a large number of sellers. c. barriers to entry
d. differentiated products.
In the long run, a perfectly competitive firm earn _______ economic profits
a. positive. b. negative. c. zero. d. positive or negative.
An abrupt depreciation of a currency whose value was fixed or managed by the government is referred to as
A. Revaluation. B. Devaluation. C. Appreciation. D. Depreciation.