There has recently been an increase in the price of dairy products used in the production of ice cream. High temperatures have also induced people to consume more ice cream. In the market for ice cream, the effects these changes will have on equilibrium
price and quantity are
A) price will increase, and quantity will decrease.
B) price will increase, and the effect on quantity is indeterminate.
C) price will decrease, and quantity will increase.
D) price will decrease, and the effect on quantity is indeterminate.
Answer: B
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a. True b. False Indicate whether the statement is true or false
Suppose Country A is a major exporter of limestone in the world market. Which of the following policies can be taken by the government of Country A to enhance the gains from exporting limestone by raising its world price?
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Refer to the information provided in Figure 31.1 below to answer the question(s) that follow.
Figure 31.1Refer to Figure 31.1. Which of the following will cause a movement from Point D to Point A?
A. technological progress B. an increase in capital stock C. an increase in the productivity of workers D. all of the above