Government intervention in a perfectly competitive market
A) reduces economic well-being.
B) is an illustration of the invisible hand theorem.
C) increases economic well-being.
D) guarantees maximized well-being.
Question 2
If the demand curve is horizontal a rightward shift of the supply curve will lead to
A) an increase in quantity supplied.
B) an increase in price.
C) a decrease in quantity demanded.
D) a decrease in price.
