An increase in both supply and demand must increase both equilibrium price and quantity.
a. true
b. false
Ans: b. false
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June makes holiday wreaths and sells them during the holiday season. The figure above shows her supply curve of wreaths per week. Use the midpoint method in this problem
a. Calculate the percentage change in quantity between points A and B. b. Calculate the percentage change in price between points A and B. c. Calculate the price elasticity of supply between points A and B.
If buyers were required to pay the federal excise tax on gasoline directly to the government, the demand curve for gasoline would shift up
Indicate whether the statement is true or false
For which pair of firms would a merger be horizontal?
A. Avis Car Rentals and United Airlines B. Nike and Starbucks C. Barnes and Noble and Wordsworth Booksellers D. US Steel and Boeing
Answer the following statement true (T) or false (F)
1) The Securities and Exchange Commission's supervision of Wall Street financial firms is a possible example of regulatory capture. 2) Economists widely support deregulation of industries that tend toward monopoly or generate substantial negative externalities. 3) Deregulation is seen as a solution to regulatory capture because it eliminates the regulatory agency that can or has been captured. 4) Government loan guarantees tend to socialize gains and privatize losses. 5) Government guarantees that socialize losses and privatize gains tend to encourage risky and imprudent investment.