Give an example that is not in the text of how price can become indeterminate.
What will be an ideal response?
Answers will vary, but should show a thorough understanding of how a change in both supply and demand can cause price to become indeterminate. For example, suppose a new manufacturing process speeds up the production of tennis rackets, thereby increasing the supply. However, at the same time, the popularity of tennis soars, thereby increasing the demand for more racquets. Because of the increase in supply and demand, the quantity of racquets will increase significantly. However, the change in price will become indeterminate. It depends on whether supply or demand increases more. If supply increases more than demand, the equilibrium price will drop. If demand increases more than supply, then the equilibrium price will increase.
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"Fluctuations in exchange rates, other things remaining the same, create a situation in which money buys the same amount of goods and services in different currencies
" What does the previous statement describe? Will these fluctuations occur in the short run or the long run?
Answer the following statement true (T) or false (F)
1) Price-fixing is illegal under Section 1 of the Sherman Act. 2) Monopolization is illegal under Section 1 of the Sherman Act. 3) The U.S. Justice Department, the Federal Trade Commission, state attorneys general, and injured private parties can independently file charges against firms under the Sherman Act. 4) Anticompetitive mergers are illegal under provisions of the Clayton Act (as amended).