Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause
a. both the equilibrium price and quantity to decrease.
b. both the equilibrium price and quantity to increase.
c. the equilibrium price to increase and the equilibrium quantity to decrease.
d. the equilibrium price to decrease and the equilibrium quantity to increase.
a
Economics
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Excessive volatility refers to the fact that
A) stock returns display mean reversion. B) stock prices can be slow to react to new information. C) stock price tend to rise in the month of January. D) stock prices fluctuate more than is justified by dividend fluctuations.
Economics
Suppose market demand is Q = 1000 - 4p. If all firms have LRAC = 50 - 5q + q2, how many identical firms will there be when this industry is in long-run equilibrium?
What will be an ideal response?
Economics