Which of the following is true of the law of supply?
a. The law of supply is the sole determinant of market prices.
b. The law of supply states that as the price of a good rises, the quantity supplied rises.
c. The law of supply holds good only in the long-run.
d. The law of supply is valid only in a market system of allocation.
e. The law of supply asserts that as the cost of producing a good rises, the quantity supplied rises.
b
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At a Nash equilibrium: a. each firm is said to be doing as well as it can, regardless of the actions of its competitor. b. each firm is said to be doing as well as it can, given the actions of its competitor
c. firms always choose strategies in order to maximize the social welfare. d. firms always choose strategies to avoid the worst possible outcome.
Which of the following is false? a. The price elasticity of demand measures the responsiveness of quantity demanded to a change in price
b. The price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price. c. If demand is elastic, it means the quantity demanded changes by a relatively larger amount than the price change. d. All of the above are true.