If a perfectly competitive firm experiences a permanent increase in demand, profits will become negative in the short run, and in the long run adjustment some firms would exit from the market, causing the supply curve to shift inwards

The individual with the highest valuation of the good will win in which of the following auctions?

A) English Auction B) Dutch Auction C) Sealed Bid Auction D) All of the above.

If a consumer buys less gasoline because gas prices increased by 100 percent, even though all other prices have also increased by 100 percent, then

A) the consumer is paying too close attention to changes in relative prices. B) wages and prices are too flexible. C) the consumer has been fooled by money illusion. D) inflation is not a problem in the economy.