Per-unit transaction costs
a. may cause the demand and supply curves to shift either inward or outward depending on the value obtained from transaction agents.
b. refer only to the commission paid to a third party for each transaction made.
c. are absorbed by the party seeking the transaction.
d. have the same effect on behavior as do lump-sum transaction costs; the difference in terminology is purely definitional.
a
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If the aggregate supply curve is the horizontal an increase in government spending will result in which of the following?
A) Increase/Increase B) Increase/No change C) Increase/Decrease D) No change/Increase E) No change/No change
If you are willing to purchase a house for $500,000 and you purchase the house for $500,000 . this transaction will generate: a. There is no surplus created for either of the party
b. $0 worth of seller surplus and unknown amount of buyer surplus. c. $0 worth of buyer surplus and unknown amount of seller surplus. d. No information provided.