In Great Britain, raising taxes on gasoline has increased the costs of supplying gasoline. As a result, the equilibrium quantity of gasoline ________ and the equilibrium price of gasoline ________
A) increases; falls
B) decreases; falls
C) does not change; rises
D) decreases; rises
E) increases; rises
D
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Federal spending and taxation both affect and are influenced by the overall level of economic activity
Indicate whether the statement is true or false
One reason the Medicare system costs so much is
A) the amount of medical services is determined by the equilibrium of supply and demand. B) the supply of medical services does not respond to price changes. C) supply and demand analysis does not apply. D) beneficiaries are entitled to receive services for which the per-unit cost exceeds their own personal out-of-pocket payment.
Government price guarantees for certain crops are an example of:
A.) A price floor. B.) A price ceiling. C.) A monopoly. D.) The market mechanism.
Over a period of time both the price and the quantity sold of a certain product have increased. One possible explanation might be that:
a. Supply decreased over time, while demand remained the same b. Demand increased over time, while supply remained the same c. Supply increased over time, while demand remained the same d. Supply increased over time, while demand declined