According to the graph shown, if the price were $5 a:
A. shortage would exist, signaling sellers to leave the market.
B. shortage would exist, signaling buyers to bid up the price.
C. surplus would exist, signaling sellers to drop their price.
D. surplus would exist, signaling buyers to bid up the price.
B. shortage would exist, signaling buyers to bid up the price.
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The lack of job information for workers would be an example of which explanation for wage differentials among workers?
A. Noncompeting groups B. Compensating differences C. Market imperfections D. Principal-agent problems
The additional pleasure or satisfaction from a good declines as more of it is consumed in a given period. This is the definition of the
A. Total revenue rule. B. Law of demand. C. Law of diminishing marginal utility. D. Law of diminishing total utility.