When price is $8
A. quantity demanded is greater than quantity supplied and, therefore, price must fall to get to equilibrium price.
B. quantity demanded is greater than quantity supplied and, therefore, price must rise to get to equilibrium price.
C. quantity supplied is greater than quantity demanded and, therefore, price must fall to get to equilibrium price.
D. quantity supplied is greater than quantity demanded and, therefore, price must rise to get to equilibrium price.
C. quantity supplied is greater than quantity demanded and, therefore, price must fall to get to equilibrium price.
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Menu costs refers to
a. resources used by people to maintain lower money holdings when inflation is high. b. resources used to price shop during times of high inflation. c. the distortion in incentives created by inflation when taxes do not adjust for inflation. d. the cost of more frequent price changes induced by higher inflation.
The argument that a large firm dominating an industry will not necessarily act like a monopolist, as expressed in the 1920 U.S. Steel case, suggests that the application of antitrust laws should be based on firm:
A. Behavior B. Structure C. Efficiency D. Concentration ratios