5 Written questions
5 Matching questions
- The fact that most medical care purchases are financed through insurance:
- If the demand for farm products is price inelastic, a good harvest will cause farm revenues to:
- The demand for autos is likely to be:
- Allocative efficiency is achieved when the production of a good occurs where:
- What do the income effect, the substitution effect, and diminishing marginal utility have in common?
- a decrease
- b P = MC.
- c They all help explain the downsloping demand curve.
- d increases the amount of health care consumed by reducing the price of additional units of care.
- e less price elastic than the demand for Honda Accords.
5 Multiple choice questions
- economic profits earned by firms already in the industry.
- to firms in all types of industries.
- the price elasticity of demand is 2.25.
- relatively price inelastic.
5 True/False questions
Under what conditions would an increase in demand lead to a lower long-run equilibrium price? → The firms in the market are part of a decreasing-cost industry.
Alex was willing to pay $50 for the new World Cup soccer ball. When he received it as a gift, he was willing to sell it, but for no less than $80. According to behavioral economists: → utility.
Because of "mental accounting:" → to firms in all types of industries.
Suppose a purely competitive, increasing-cost industry is in long-run equilibrium. Now assume that a decrease in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price: → and industry output will be less than the initial price and output.
A supply curve that is a vertical straight line indicates that: → a change in price will have no effect on the quantity supplied.