If the quantity demanded of a good is greater than the quantity supplied of the good at the current price, then
A. The demand curve will shift to the left to create equilibrium.
B. The supply curve will shift to the right to create equilibrium.
C. There is a surplus of the good.
D. Price will increase until it reaches the equilibrium price.
Answer: D
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The oligopoly model that is most appropriate when one large firm usually takes the lead in setting price is the ________ model
A) Cournot B) Stackelberg C) game theory D) prisoner's dilemma
The purpose of social regulation is
A) to force a firm to produce at the point where marginal cost equals marginal revenue. B) to control the quality of service provided by a monopolist. C) to control the price that regulated enterprises are allowed to charge. D) to focus on the impact of production on the environment and society, the working conditions under which goods and services are produced, and sometimes the physical attributes of goods.