A shortage of a good means
a. an excess supply of the good
b. an excess demand of the good
c. quantity demanded is less than the quantity supplied
d. the quantity supplied exceeds the quantity demanded
e. price is higher than its equilibrium level in the market
B
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An individual derives utility from consuming "all other goods," g, and clean air (measured by the reduction in particulate matter per m3), a, as measured by the utility function U(g,a) = g0.6a0.4
The price of consumer goods equals $20 and the price of clean air (abatement) equals $10. What is the slope of the Engel curve when income increases from $100 to $200? A) The slope is 25. B) The slope is -25. C) The slope is zero. D) The slope is infinite.
Barriers to entry
a. prevent monopolies from earning profit in the long run b. prevent monopolies from earning profit in the short run c. may allow monopolies to earn profit in the long run d. prevent government from regulating a monopoly e. prevent a natural monopoly from raising its price