A permanent increase in demand ______ economic profit in the short run and some firms will ____ in the long run
A. does not change; exit the market
B. increases; enter the market
C. increases; raise their price
D. does not change; advertise their good
B The increase in demand leads to a higher price, which in-creases the firms' economic profit. The economic profit influ-ences other firms to enter the market.
Economics
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Which of the following is a market-based solution to the problem of adverse selection?
A) Taxation B) Signaling C) Sniping D) Subsidization
Economics
A situation in which the quantity of bonds supplied exceeds the quantity of bonds demanded is called a condition of excess supply; because people want to sell ________ bonds than others want to buy, the price of bonds will ________
A) fewer; fall B) fewer; rise C) more; fall D) more; rise
Economics