The equilibrium quantity in a perfectly competitive market is determined:
A) at the point of intersection of the demand curve and the quantity axis.
B) at the point of intersection of the demand and supply curves.
C) at the point of intersection of the supply curve and the quantity axis.
D) at the point of tangency between the demand and supply curves.
B
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Comparing the aggregate supply curve and the short-run Phillips curve, we see that they
A) both exist because real wage rate is fixed in the short run. B) both exist since money wages are flexible. C) each describe different parts of the economy. D) describe the same phenomena but contradict each other. E) both exist because money wage rate is fixed in the short run.
A maximum legal price that may be charged for a particular good or service is known as a
A) price floor. B) price ceiling. C) black market. D) price support.