Which of the following is true about how the "invisible hand" influences economic activity through prices when a product has lower demand than supply?
a. The price must decrease, causing more buyers to buy and less sellers to sell.
b. The price must decrease, causing more buyers to buy and more sellers to sell.
c. The price must increase, causing less buyers to buy and more sellers to sell.
d. The price must increase, causing less buyers to buy and less sellers to sell.
a
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Based on wage setting behavior, we know that an increase in the unemployment rate will cause
A) no change in the real wage. B) a reduction in the real wage. C) an increase in the real wage. D) an upward shift of the WS curve.
The desirable level of output in a perfectly competitive market if there exists a detrimental externality is
a. the point at which MSC curve intersects the marginal revenue curve. b. the point at which MSC intersects the MPC. c. the point at which MSC intersects MPC. d. the point at which marginal revenue curve intersects the MPC.