A shortage will occur when
A) the price equals the market clearing level.
B) the price is above the market clearing level.
C) there is an excess quantity supplied.
D) the price is below the market clearing level.
D
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By 2017, Pepsi and Coke were attempting to increase their profits in the bottled water market by introducing premium water brands. Pepsi and Coke introduced LIFEWTR and Smartwater, respectively, while competitors like Nestle and Danone produced their own
versions of premium water. The premium water brands marketed to compete with LIFEWTR and Smartwater would be considered A) complements to LIFEWTR and Smartwater. B) substitutes for LIFEWTR and Smartwater. C) inferior goods compared to LIFEWTR and Smartwater. D) normal goods compared to LIFEWTR and Smartwater.
Refer to the table below. If Fresh Laundry is currently producing 2 quality units, to maximize profit, Fresh Laundry should ________ the number of quality units as the current quality marginal revenue is ________ than its marginal cost.
Fresh Laundry is a firm that produces laundry detergent. The table above summarizes Fresh Laundry's product quality marginal revenue and marginal cost at various quality levels.
A) increase; greater
B) decrease; greater
C) increase; less
D) decrease; less