Under the long-run equilibrium, for perfectly competitive markets without any government intervention,:
a. producer surplus is greater than consumer surplus.
b. consumer surplus is greater than producer surplus.
c. the sum of consumer and producer surplus is maximized.
d. consumer surplus is maximized.
e. producer surplus is maximized.
c
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What would be the most likely effect in the market for OPEC oil if the U.S. were to impose a legal ceiling price on crude petroleum produced domestically? Assume their price is far below the current world price?
A) The demand would decrease. B) The demand would increase. C) The supply would decrease. D) The supply would increase. E) Only the quantity would change, not the demand or the supply.
The law of demand refers to the
a. inverse relationship between the price of a good and the willingness of consumers to buy it. b. price increase that results from an increase in demand for a good of limited supply. c. inverse relationship between the price of a good and the quantity offered for sale. d. increase in the quantity of a good available when its price increases.