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Questions and Answers
What is the economic model of price determination in a market?
What is the economic model of price determination in a market?
- Marginal cost and market price
- Price and quantity
- Total output and aggregate price level
- Demand and supply (correct)
In a competitive market, what will vary until it settles at a point of economic equilibrium?
In a competitive market, what will vary until it settles at a point of economic equilibrium?
- Cost of producing an extra unit
- Quantity demanded
- Unit price for a particular good (correct)
- Quantity supplied
What determines supply in a perfect competition according to the text?
What determines supply in a perfect competition according to the text?
- Quantity demanded
- Market price
- Marginal cost (correct)
- Aggregate price level
What effect would a rise in the cost of raw materials have on supply?
What effect would a rise in the cost of raw materials have on supply?
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How is a shift up in the supply curve described according to the text?
How is a shift up in the supply curve described according to the text?
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