When a Market Is in Equilibrium

question 497

Multiple Choice

When a market is in equilibrium,

• A) the number of buyers is exactly equal to the number of sellers.
• B) the supply curve has the same slope as the demand curve.
• C) there is no shortage and no surplus at the equilibrium price.
• D) everyone has all they want of the commodity in question.

Analyze the impact of price discrimination on consumer surplus, producer surplus, and overall social welfare.

Identify examples of price discrimination in various industries and understand the criteria that make it feasible.

Understand the concepts of marginal cost, average cost, and fixed costs in the context of monopolies and natural monopolies.

Analyze the role and impact of antitrust laws and government regulation on monopolies and market competition.

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Definitions:

Complex Attitude

An attitude that contains both positive and negative components regarding an object, person, or issue.

Mere Exposure

A psychological phenomenon where repeated exposure to a stimulus increases an individual's preference for that stimulus.

Implicit Association Test (IAT)

A psychological test designed to measure the strength of an individual's automatic associations between mental representations of objects (concepts) in memory.

Prosocial Behavior

Refers to voluntary actions that are intended to help or benefit another individual or group of individuals.