True/False Questions (Circle T or F)

19. T F An increase in the price of bread tends to cause an

increase in the supply of bread.

20.T FPrice ceiling is associated with agricultural products.

21.T FThe rising portion of Marginal cost between AVC and

AC is the supply curve of a competitive farm.

22. T F Elasticity number varies between 0 and 1.

23. T F The demand curve having infinite elasticity is

downward sloping.

24. T F If the demand for a product is unit elastic and the price

is raised, total revenue will remain same.

25. T F Ifthesupplycurveforaproduct isvertical,thenthe

elasticityofsupplyis equal to 0.

26. T FTotal utility is the sum of marginal utilities.

27. T F A monopolist's equilibrium price and quantity are

determined at the intersection point of demand and

supply curve.

28. T F A revenue maximizing monopolist produces at where

MR=MC.

29. T F Price discrimination is only possible if there is

possibility of elasticities same in different markets.

30. T F The kinked-demand model applies to all oligopolistic

markets.

31. T F In kinked-demand oligopoly, prices tend to be highly

inflexible.

32T FA centrally planned economy promotes government

ownership, no competition, and no profit.

33. T F A public good is anonexcludableitem.