In the market for apartment rentals, the demand and supply equations are given by QD = 9,000 – 2P and QS = 3P + 1,000, where P is the price per apartment and Q measures the quantity of apartments. What is the equilibrium quantity?

Which of the following is an example of the sunk cost fallacy?

If a firm practices first-degree price discrimination, the firm must

Government encouragement of monopoly

Suppose the demand curve for backpacks is Q = 38 – 2P. What is the lowest price at which no consumer is willing to buy backpacks (i.e., the demand choke price)?

A firm is producing 300 units of output at a total cost of $6,000, with a variable cost of $5 per unit. What is the firm’s average fixed cost?

A donut shop has noticed that when they increase the price of chocolate donuts by 5%, the quantity demanded of breakfast sandwiches decreases by 1%. The cross-price elasticity of demand for breakfast sandwiches is _____, so the two foods are _____.

To maximize profits (independent of the type of a market the firm is in), a firm should produce where

Suppose the equilibrium price for renting an apartment is $800 per month. Concerned about the cost to tenants, the government imposes a price ceiling of $400 per month. This policy will _____.

In production theory, the short run is defined as _____ and the long run is defined as _____.