exam set 4

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  1. If prices are held below the equilibrium​ price
    there exists a shortage in the market.
  2. After the demand curve shifts to D2 , if the price is held below the new  equilibrium, then:
    the quantity demanded will be greater than the quantity supplied.
  3. Which of the following statements is  true?
    Price controls weaken the functioning of the invisible hand.
  4. which of the following statements differentiates between a shortage and a  surplus?
    A shortage occurs when quantity demanded exceeds quantity​ supplied, whereas a surplus occurs when quantity supplied exceeds quantity demanded
  5. Reservation value of a buyer reflects her​ ________.
    willingness to pay for a good or service
  6. In a perfectly competitive​ market, if the market price is lower than the average total cost of​ production:
    existing firms will leave the market.
  7. If prices are held below the equilibrium​ price:
    there exists a shortage in the market.

Card Set Information

Author:
dwrght16
ID:
329524
Filename:
exam set 4
Updated:
2017-03-14 18:04:45
Tags:
econ
Folders:

Description:
midterm
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