Answer the following statement(s) true (T) or false (F)
1. The economic model of supply and demand is one that can be tested using data.
2. When an economist talks about equilibrium he is specifically discussing a situation where the quantity supplied equals the quantity demanded.
3. The fact that grocery stores and convenience stores sell physically identical products for different prices is a violation of the "law of one price.
4. In the supply/demand model, prices and quantities are exogenous variables.
5. While the model o'False supply and demand has been around 'Falseor a long time, it has survived more because it mimics reality than because it actually predicts something.
1. True
2. False
3. False
4. False
5. False
You might also like to view...
A firm in perfect competition is a price taker because
A) there are no good substitutes for its good. B) many other firms produce identical products. C) it is very large. D) its demand curves are downward sloping. E) its demand curve is vertical at the profit-maximizing quantity.
To face scarcity means individuals
A) choose. B) economize. C) sacrifice some plans over others. D) all of the above.