If Price Is Above the Equilibrium Value,then

question 99

Multiple Choice

If price is above the equilibrium value,then

• A) producers hope that buyers will want more in the future.
• B) buyers are unhappy because they are unable to find the good for sale.
• C) producers find their inventories growing and will start to cut price.
• D) neither buyers nor sellers have an incentive to alter their behaviour.
• E) the government must enforce price controls.

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Definitions:

Nondiscriminating Pure Monopolist

A monopolist that charges all consumers the same price for its product, regardless of the differences in their willingness to pay.

Marginal Revenue Curves

A graphical representation showing how an additional unit sold affects total revenue, typically sloping downwards for firms with market power.

Nondiscriminating Monopolist

A monopolist who charges the same price for their product to all consumers, rather than adjusting the price based on market segmentation or consumer willingness to pay.