In a perfectly competitive market, the equilibrium price
a. is determined by all the buyers in the market but no single buyer is able to influence it
b. is determined by all the sellers in the market but no single seller is able to influence it
c. adjusts until the quantity supplied by all sellers is equal to the quantity demanded by all buyers
d. is not influenced by the cost structure of the firms in the market
e. is not influenced by the preferences of the consumers in the market
C
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Studying the determination of prices in individual markets is primarily a concern of
A) positive economics. B) negative economics. C) macroeconomics. D) microeconomics.
If the Fed set and achieved a goal of zero unemployment,
A) the inflation rate would increase. B) real GDP would equal potential GDP. C) they would have an easier time achieving the goal of price stability. D) the natural rate of unemployment would be negative.