Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases. What are we sure of?
A) Both equilibrium price and quantity increase.
B) Equilibrium price increases.
C) Equilibrium price decreases.
D) Equilibrium quantity increases.
E) Equilibrium quantity decreases.
D
You might also like to view...
What three factors that were critical to economic prosperity did Adam Smith observe, and later publish in The Wealth of Nations?
What will be an ideal response?
Which of the following is usually discussed in the case against government?
A. special interest groups and transfers B. the unintended effects of governments actions C. removal from the prisoner's dilemma D. a and b E. none of the above
Table 36-1Suppose the economy of Macroland is described by the following:C = 200 + 0.8 DI (DI = disposable income)I = 300 + 0.2Y?50r (Y = GDP)(r, the interest rate, is measured in percentage points. For example, a 9 percent interest rate is r = 9).For this economy, assume that the Federal Reserve uses its monetary policy to peg the interest rate atr = 5G = 750T = 0.25YX = 200M = 150 + 0.2YHint: DI = Y?T From Table 36-1, compute equilibrium GDP for Macroland.
A. 3,000 B. 2,950 C. 2,625 D. 2,525
Converting corn into ethanol is most profitable when there is/are:
a. High ethanol prices and low corn prices b. Low ethanol prices and low corn prices c. Low ethanol prices and high corn prices d. When the amount of ethanol produced approaches the limits of the amount required in production of gasoline blended with 10% ethanol (the current "blend wall") e. Restricted expansion of ethanol production capacity