Suppose the market demand curve is given by Qd = 80 − 10P, and the market supply curve is given by Qs = 10 + 15P. What is the equilibrium price and quantity?

According to the textbook, the evidence indicates that NAFTA has

If either the production or consumption of a good generates an external cost, then the market equilibrium quantity will be

One reason the demand curve slopes ______ is that as prices fall ______.

Refer to the accompanying figure. Suppose all the sellers in this market started out charging a price of $45 per unit. What is the most likely result?

Suppose that Tom bought a bike from Lauren for $195. If Lauren’s reservation price was $185 and Tom’s reservation price was $215, the total economic surplus from this transaction was

A seller’s reservation price is generally equal to

Suppose that the equilibrium price of apples decreases, and the equilibrium quantity of apples increases. This is best explained by

One reason the demand curve slopes ______ is that as prices fall ______.

If individuals are rational, they should choose actions that yield the