Another term for equilibrium price is?
Price floor
Demand price
Market clearing price
Satisfactory price
Correct answer is C
Market-clearing price is another term used interchangeably with equilibrium price. Equilibrium price is a common economics term that refers to the exact price at which market supply equals market demand.
Parallel markets are usually the results of
Excess supply
The activities of rich individuals
Price legislation
Inadequate information
Correct answer is C
A parallel market arises when the government limits the amount of foreign exchange that can be bought or sold for particular transactions, causing excess demand or supply to spill over into a parallel market, or authorizes that exchange rates for certain transactions be pegged and for other transactions be floating.
A rational consumer will purchase a product whose price is?
Greater than his marginal utility
Less than his marginal utility
Equal to his marginal utility
Equal to his total utility
Correct answer is C
A consumer is rational if he decides for the option that maximizes his/her utility. When studying the bachelor for Economics, in microeconomics class, the teacher would always tell you that it is assumed that consumers are rational, meaning that they maximize their profits based on their utility payoffs.
Increase in the supply of a product can be caused by?
Change and taste and fashion of consumers
Increase in the income of consumers
A fall in the cost of production
Increase in the price of a product
Correct answer is C
An increase in supply is illustrated by a shift of the supply curve to the right. An increase in supply can be caused by: an increase in the number of producers. a decrease in the costs of production (such as higher prices for oil, labour, or other factors of production).
Price elasticity of supply can be influenced by the following factors except?
Time period
Cost of production
Size of consumer income
Nature of the product
Correct answer is D
It refers to how the amount supplied of a good or service changes in response to a price of factor change.
Factors that Influence the PES. There are numerous factors that impact the price elasticity of supply including the number of producers, spare capacity, ease of switching, ease of storage, length of production period, time period of training, factor mobility, and how costs react.