Answer the following questions true (T) or false (F)
1. If the demand for a product decreases and the supply of the product does not change, equilibrium price and equilibrium quantity will both increase.
2. If the demand curve for a product shifts to the right and the supply curve for the product shifts to the left, equilibrium price and equilibrium quantity will both increase.
3. A monopoly is defined as a firm that has the largest market share in an industry.
1. FALSE
2. FALSE
3. FALSE
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Euro-pessimists believe that the Eurozone has been unsuccessful because:
A) it has had little effect on already high intra-European trade. B) the euro is becoming a reserve currency for foreign central banks. C) European inflation has fallen to 10% annually. D) there are no exit mechanisms for countries to leave the Eurozone.
Which of the following is not cited as a reason for a firm to pursue a group pricing strategy?
A) To minimize its total costs of production. B) To increase its total profit. C) To attract and lock in additional customers. D) To create network externalities.