Refer to the information provided in Figure 34.4 below to answer the question(s) that follow.
Figure 34.4Refer to Figure 34.4. The demand and supply of pounds are D2 and S2. If the supply shifts to S1 and demand remains unchanged at D2
A. the dollar depreciates and the equilibrium quantity of pounds decreases.
B. the dollar appreciates and the equilibrium quantity of pounds increases.
C. the dollar depreciates and the equilibrium quantity of pounds increases.
D. the dollar appreciates and the equilibrium quantity of pounds decreases.
Answer: B
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When the price of oysters decreases 25%, quantity demanded is unchanged. The price elasticity of demand for oysters is
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What other curve is the same as the market supply curve? Why are the curves the same?
What will be an ideal response?
In the simple accelerator model, if expected output declines,
A) gross investment becomes negative. B) net investment becomes negative. C) both gross investment and net investment become negative. D) the desired stock of capital will become negative.