Where there is asymmetric information between buyers and sellers:        product shortages will occur at the equilibrium price.        product surpluses will occur at the equilibrium price.        markets can produce inefficient outcomes.        markets will fail due to the "free-rider problem."

What evidence supports market efficiencies?

Question 4 Calculate the equilibrium price for an illegal good that can be harvested for zero cost when competitive sellers face confiscation and a fine of 600 dollars and the probability of arrest is equal to n = 1/6.

An increase in the price of gasoline provides   - information that tells consumers to buy more gas - information that tells producers to produce less gas - information that tells consumers to buy less gas - no information

Market equilibrium takes place at the point where MC < MR  True/ False

Problem 6-3 Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. In a competitive market, the market demand curve is Q = 28 - 2p and the market supply curve is Os = -8 + 2p. Qa 28 -2 p -8 2 p a) Detemine the quantity demanded and quantity supplied for p = $4, 5, 6, .. , 14. b) For prices p = $4, 5, 6, ... , 14, determine the consumer surplus. c) For prices p = $4, 5, 6., 14, determine the producer surplus. а) b) c) Qa Qs CS PS $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 $14 Determine the equilibrium quantity and price. The equilibrium quantity is and the equilibrium price is How does an increase in price affect the consumer surplus? When the price increases, the consumer surplus decreases increases How does an increase in price affect the producer surplus? When the price increases, the producer surplus d) Suppose the government limits the quantity traded in…

Equilibrium price will not change if the decrease in demand meets with a proportionate decrease in the supply TRUE/FALSE

A voluntary exchange between Mike (the purchaser) and Wayne (the seller) occurs because   Mike stands to gain and Wayne to lose   they had no choice   Mike stands to lose and Wayne to gain   they both gain from the transaction

A surplus (excess) condition will cause the supplier / producer to increase the price to get more profit so that the price returns to the equilibrium point.True or false?

If the current market price was $10, then  Group of answer choices there would be a shortage of 600 units. there would be a surplus of 600 units. the market would be in equilibrium. there would be a surplus of 300 units. there would be a shortage of 300 units.