At market equilibrium,
A) quantity demanded equals quantity supplied. B) shortages are greater than surpluses.
C) surpluses are greater than shortages. D) demand equals supply.
A
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The table above shows Tom's total utility from milkshakes and sodas. Tom's total budget for milkshakes and sodas is $20.00 per week. Milkshakes cost $2.00 each and sodas cost $1.00 each
What quantity of sodas does Tom purchase at his consumer equilibrium? A) five B) six C) seven D) eight
Price discrimination is never perfect because:
A) it increases consumer surplus. B) it is regulated by the government. C) it lowers profits of producers to an extent. D) it is impossible to know consumers' willingness to pay.
A monopolist can maximize profits by:
A. selling as much as he can produce. B. producing at the level of output at which MR = 0. C. following the same rules as a perfectly competitive firm. D. selling an output where P = ATC.
Since the late 1970s, the United States
A) has experienced only moderate inflation, usually between 2 to 3 percent. B) has seen a steadily increasing rate of inflation. C) has experienced low inflation, except for a seven-year period between 1979 and 1986. D) has experienced high inflation followed by a long period of deflation.