When both supply and demand shift to the left, the equilibrium

a.

price always rises

b.

price always falls

c.

quantity always falls

d.

quantity always rises

Firms use advertising to shift consumer demand. In doing so, which of the following determinants of demand do advertisers mostly rely upon?

Select one:

a.

Changes in income

b.

The price of related goods

c.

Changes in tastes and preferences

d.

Expectations regarding the future price

After her wages were cut by 10%, Maria goes out less often to eat Pizza. Which of the following best explains this situation?

Select one:

a.

Pizzas are a normal good. As Maria's income decreased, her demand curve shifted right

b.

Pizzas are an inferior good. As Maria's income decreased, her demand curve shifted right

c.

Pizzas are an inferior good. As Maria's income decreased, her demand curve shifted left

d.

Pizzas are a normal good. As Maria's income decreased, her demand curve shifted lef

At higher prices, the price elasticity of demand is likely to be ________, whereas it is likely to be ________ at lower prices.

Select one:

a.

perfectly elastic; perfectly inelastic

b.

elastic; inelastic

c.

inelastic; elastic

d.

perfectly inelastic; perfectly elastic

The Nash equilibrium in an oligopolistic market is generally __________ for society than the outcome of a cooperative equilibrium because the price is __________ marginal cost.

a.

better; closer to

b.

worse; closer to

c.

better; further above

d.

worse; further above