Do you agree or disagree with the statement that: “A monopolist always charges the highest possible price.”? Explain. b.) Why can’t an individual firm raise its price by reducing output or lower its price to increase sales volume in a purely competitive market
What effect should each of the following have on the demand for gasoline in a competitive market? State what happens to demand. Explain your reasoning in each case and relate it to a demand determinant.
an increase in the number of cars
the economy moves into a recession
an increase in the price of car insurance, taxes, maintenance
consumer expectations of substantial price increases in gasoline