Refer to Table 3-1. The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. At a price of $5, the quantity demanded in the market would be

Which of the following is not a characteristic of perfect competition?

a. Many small buyers. b. Different firms sell products with different features. c. Ease of entry into and exit from the market. d. Many small sellers.

What impact did the change in housing prices during 2002 to 2005 have within the framework of the AD/AS model?

a. Declining housing prices reduced aggregate demand shifting AD leftward. b. Rising housing prices increased aggregate demand shifting AD rightward. c. Rising housing prices led to increased construction shifting LRAS leftward. d. Declining housing prices caused SRAS to shift leftward.