Multiple Choice
In a free-market system, producers will react to an increase in demand when
A) the price goes up.
B) the government announces the increased demand.
C) their costs increase.
D) the free press publishes news of the increased demand.
Correct Answer:
Verified
Correct Answer:
Verified
Q104: Lower prices are always better for society.
Q105: Figure 11-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 11-2
Q106: Price decreases always increase economic efficiency.
Q107: Most economists support the idea of peak-load
Q108: Total surplus is<br>A)the sum of consumer's surplus
Q110: Under laissez-faire, the allocation of scarce resources
Q111: In a free-market economy, prices coordinate society's
Q112: The price mechanism solves the "for whom"
Q113: How does the task of production planning
Q114: In a planned economy, the concept of