A market has the following demand and supply equations: Qd = -50P + 1000 Qs = 150P - 400 Which of the following statements is true? a. If the price were $9, a surplus of 300 units would exist and price would tend to fall. b. If the price were $3, a shortage of 800 units would ...
If the price of a good is low, a. firms would increase profit by increasing output. b. the supply curve for the good will shift to the left. c. the quantity supplied of the good could be zero. d. firms can and should raise the price of the product.
Goods Computer Wine x Y Qc Qw Country mil mil gal US 60 240 France 33 1/3 200 Assuming that without trade, -the US Produces 30 million computers, and - France produces 80 million gallons of wine. Also assuming that -both countries will completely specialize in the good in whic...