Assume a perfectly competitive industry is in long-run equilibrium at a price of $150. If this industry is an increasing-cost industry and the demand for the product increases, long-run equilibrium will be reestablished at a price
A. of $150.
B. less than $150.
C. greater than $150.
D. either greater than or less than $150 depending on the magnitude of the decrease in demand.
Answer: C
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The takings clause states that the government can seize private property only if ________ is provided
A) comparably-valued property B) just compensation C) fair market value D) the seller's asking price
Consider the market for credit. When the demand for credit decreases while the supply of credit remains unchanged,
A) the interest rate will decrease and the amount of credit provided in the market will increase. B) the interest rate will increase and the amount of credit provided in the market will increase. C) the interest rate will decrease and the amount of credit provided in the market will decrease. D) the interest rate will increase and the amount of credit provided in the market will decrease.