Network externalities help to explain Facebooks success. A network externality:

		A refers to the market power that results from a firm receiving patent protection for the products is sells.
		B is a government-granted right to be the sole provider of a good or service.
		C allows a firm to use perfect price discrimination to maximize its profits.
		D is a situation when the usefulness of a product increases with the number of consumers who use it.
		E enables a firm to use arbitrage to maximize its profits.

If a decrease in supply were to increase the market price of crude oil, which of the following would be true?

		A The quantity demanded of crude oil would decrease.
		B The equilibrium price of crude oil would not change unless the demand for crude oil would also change.
		C The demand for crude oil would decrease.
		D The demand for crude oil would become more inelastic.
		E The equilibrium price of crude oil would decrease.

A price floor is a legally determined price that is set below the equilibrium price in a market.

True

False