The equilibrium price and quantity of a good, once attained, will
a. change only if either supply or demand changes
b. change only if both supply and demand change
c. change only if supply changes
d. change only if demand changes
e. never change
A
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A minimum wage set above the equilibrium wage
A) decreases the deadweight loss in the market. B) decreases the workers' surplus because workers must spend resources looking for jobs. C) increases the firm's surplus. D) increases the market's efficiency. E) has no effect on the market.
Use the following information on a hypothetical short-run production function to answer questions a-c
Units of Labor/Day 5 6 7 8 9 Units of Output/Day 120 140 155 165 168 The price of labor is $20 per day. Ten units of capital are used each day, regardless of output level. The price of capital is $50 per unit. a. Calculate the marginal and average variable product of each unit of labor input. b. Calculate total, average total, average variable, and marginal costs. c. Can you tell where diminishing marginal returns sets in?
Most economists consider the case for jawboning to control inflation is strongest when this policy is used:
a. for a long period of time. b. to combat inflation that is out of control. c. to combat cost-push inflation. d. All of these are true.
Critics argue that society is depleting its energy resources far too quickly. The most likely explanation for this behavior is that
a. firms try to avoid making irreversible decisions about resource depletion. b. investors expect interest rates to fall continuously in the future. c. individuals tend to value their own well-being more highly than the well-being of future generations. d. people do not have what Pigou called a "defective telescopic faculty."