Suppose that televisions are produced both domestically and abroad. What would a ban on imported televisions do to the price of televisions, the quantity of televisions, and the output of the domestic television industry?
What will be an ideal response?
A ban on imported televisions would lead to a leftward shift in the total supply, so price increases and quantity decreases. However, since supply is upward sloping, it is evident that domestic production will increase in the case of an import ban.
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According to the historical record of inflation since the 1300s, the inflation rate
A) became highest in the twentieth century. B) was at its lowest after Columbus arrived to America. C) was at its highest during the Industrial Revolution. D) has always been consistently high. E) was higher in the 1300s than in the 1900s.
Prior to the time of John Maynard Keynes, most economists stressed that
a. low levels of aggregate demand would lead to prolonged periods of unemployment. b. market economies were inherently unstable because of fluctuating aggregate demand. c. market adjustments would automatically direct an economy to full employment within a relatively brief period of time. d. budget deficits and surpluses were necessary for the control of economic fluctuations.
When industrial activity increases,
A) GDP decreases because of pollution. B) pollution does not necessarily increase. C) health and life expectancy decrease. D) and real GDP increases, it is the case that in all nations fewer resources are devoted to protecting the environment. E) the increase in real GDP is partially offset by the increase in pollution.
The graph below represents the market for alfalfa. The market price is $7.00 per bushel. Identify the areas representing consumer surplus, producer surplus, and economic surplus
What will be an ideal response?