The above table gives the demand and supply schedules for cat food. What is the equilibrium price and quantity?
What will be an ideal response?
The equilibrium price is $2.50 per pound of cat food because that is the price at which the quantity demanded equals the quantity supplied. The equilibrium quantity of cat food is 40 tons per year.
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A product that is a close substitute but not a perfect substitute for the products of the other firms is called
A) a homogeneous product. B) an efficient product. C) a differentiated product. D) an inelastic product.
The reason protectionism remains strong in the United States is that
A) economists can produce any result they are hired to produce. B) economists cannot persuade the general public that free trade is beneficial. C) economists do not really understand how the real world works. D) the losses associated with protectionism are diffuse, making lobbying by the public impractical. E) economists cannot agree on trade policy recommendations.