The hypothesis that people use all available information to predict the future is known as:

Refer to the figure above. If the supply curve for flash drives shifts from S1 to S2, with no change in the demand curve, the new competitive equilibrium price is:

A) $3. B) $4. C) $5. D) $7.

The main advantage of using panel data over cross sectional data is that it

A) gives you more observations. B) allows you to analyze behavior across time but not across entities. C) allows you to control for some types of omitted variables without actually observing them. D) allows you to look up critical values in the standard normal distribution.