Eco

An effective ceiling price will:

result in a product shortage.

When a price ceiling is imposed above the equilibrium price

the equilibrium outcome prevails.

The Supply Curve is upward-sloping because:

As the price increases, suppliers can earn higher levels of profit or justify higher marginal costs to produce more.

What happens in the market for "airline travel" when the price of traveling by "train" decreases?

The demand curve shifts left.

All the following shift the DEMAND curve for automobiles to the right except:

a brand new automobile dealership opens in town

When college students leave town for the summer, the demand for meals at the local restaurants declines. This results in

a decrease in equilibrium price and quantity.

The opportunity cost of spending four hours at a movie theater watching a double feature the night before a final exam would be

a higher grade on the exam

A firm's supply curve is upsloping because:

beyond some point the production costs of additional units of output will rise.

An increase in the price of a product will reduce the amount of it purchased because:

consumers will substitute other products for the one whose price has risen

If the cost of computer components falls, then

the supply curve for computers shifts to the right

If a sin tax is placed on sales of alcohol,

the supply curve shifts to the left.

If the demand curve shifts to the right, then we move up and to the right along our supply curve

true