In markets, prices move toward equilibrium because of
a. the actions of buyers and sellers
b. government regulations placed on market participants.
c. increased competition among sellers.
d. buyers' ability to affect market outcomes.
a
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When estimating a demand function for a good where quantity demanded is a linear function of the price, you should
A) not include an intercept because the price of the good is never zero. B) use a one-sided alternative hypothesis to check the influence of price on quantity. C) use a two-sided alternative hypothesis to check the influence of price on quantity. D) reject the idea that price determines demand unless the coefficient is at least 1.96.
What is the equilibrium payoff for the stores?
a. Megastore $95 and Superstore $80 b. Megastore $305 and Superstore $55 c. Megastore $65 and Superstore $285 d. Megastore $165 and Superstore $115