In a competitive market, prices adjust until all consumers find themselves
A) maximizing utility.
B) on the contract curve.
C) happy with their original endowment.
D) with many opportunities to gain from additional exchange.
B
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How do economists compute the price elasticity of demand?
a) the percentage change in the price divided by the percentage change in quantity demanded b) the percentage change in income divided by the percentage change in the quantity demanded c) the percentage change in the quantity demanded divided by the percentage change in price d) the percentage change in the quantity demanded divided by the percentage change in income
Along the per worker production function, as the capital-labor ratio ________, increases in output per worker become progressively ________
A) increases; larger B) increases; smaller C) decreases; larger D) decreases; smaller