It has been noted that when the price of a good increases, people purchase less of the good. This is an example of

According to the factor price equalization theorem, if country B is labor abundant, then if country B initiates trade with country A

A) wages and rents should fall in A. B) rents and rents should rise in A. C) wages should rise and rents should fall in A. D) wages should fall and rents should rise in A.

A competitive equilibrium is a state of affairs in which

A) markets clear, and output is maximized. B) output is maximized, and all agents are equally well-off. C) all agents are equally well-off and agents are price-takers. D) economic agents are price takers and markets clear.