The price mechanism does not act as a ?

Related Mcqs:

Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for wheat today ?

A. The impact on both price and quantity is ambiguous B. Price will decrease, quantity is ambiguous. C. price will increase, quantity will decrease D. price will increase, quantity is ambiguous. E. Price will increase, quantity will increase...

If the market price is below the equilibrium price ?

A. quantity demanded will be greater than quantity supplied B. quantity demanded will be less than quantity supplied C. demand will be less than supply. D. quantity demanded will equal quantity supplied ....

An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?

A. worse off; worse off B. better off; better off C. better off; worse off D. equal, unequal...

A monopolistic market has ?

A. many buyers and sellers B. none of these answers C. firms that are price takers D. only one seller...

When a market is contestable, incumbent firms must __________ to avoid the entry of new competitors?

A. behave like competitive firms B. agree to act together C. differentiate their products D. practice price discrimination...