Currently, the market for pizza pies in your neighborhood is at equilibrium. If a large number of people move into the area, we would expect the market price of pizza to:
a) decrease
b) increase
c) remain unchanged
b) increase
You might also like to view...
In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market sale ________ the ________ of reserves, causing the federal funds rate to increase, everything else held constant
A) increases; supply B) increases; demand C) decreases; supply D) decreases; demand
Which of the following can serve as a barrier to entry?
a. legal restrictions b. patents c. control of scarce inputs or resources d. all of the above
Macroeconomics is best suited to answering questions such as
a. what determines the unemployment rate among students on this campus b. why rent is higher in big cities than in smaller ones c. how fast the overall price level will rise next year d. what determines the demand for public transportation in rural areas e. why sales taxes in this area are increasing
The basic tools of supply and demand apply to
a. both markets for goods and services and markets for labor services. b. markets for goods and services but not to markets for labor services. c. markets for goods and services but not to markets for factors of production. d. all markets except those in which demand is derived demand.