Ceteris paribus, an increase in the number of sellers of running shoes causes equilibrium price to
A. Decrease and equilibrium quantity to decrease.
B. Increase and equilibrium quantity to increase.
C. Decrease and equilibrium quantity to increase.
D. Increase and equilibrium quantity to decrease.
Answer: C
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"The federal budget is required by law to balance." Is the previous statement correct or incorrect?
What will be an ideal response?
The prisoners' dilemma is similar to the problem faced by firms in an oligopoly in the United States because
A) mutual interdependence exists, and collusion is illegal in the United States, so the firms cannot legally communicate. B) collusion is legal in the United States, and firms can communicate their pricing decisions to each other. C) failure to cooperate leads to better outcomes than cooperation. D) private prisons are run by oligopolies. E) the firms can communicate, but mutual interdependence exists.