At the market equilibrium
a. quantity exceeds price
b. excess demand equals excess supply (and both are zero)
c. price and quantity are equal
d. each seller produces at full capacity
e. everyone who is represented along the demand curve buys the good
B
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The level of output at which all economies of scale have been exhausted is known as
A) constant returns to scale. B) minimum efficient scale. C) the economically efficient output level. D) optimal economic size.
The short-run Phillips curve is downward sloping because
A) the expected inflation rate is zero in the short run. B) the economy always returns to full employment. C) reducing the unemployment rate will reduce the inflation rate in the short run. D) in the long run, the expected inflation rate equals the actual inflation rate. E) the unemployment rate can be above or below the natural unemployment rate.
Trade benefits a country by
A) increasing available consumption choices. B) reducing the need for specialization in production. C) reducing the relative price of the exported good. D) increasing the real income of all resource owners. E) increasing the wage rate.
Consider a monopolist who charges a single price to all of its customers. If this monopolist starts price discriminating, its output will ________ and its profit will ________.
A. fall; rise B. fall; fall C. rise; rise D. rise; fall