How does the equilibrium quantity traded change when there is an increase in supply and a decrease in demand?
The impact on equilibrium quantity is indeterminate because the increase in supply increases the equilibrium quantity and the decrease in demand decreases it. The change in the equilibrium quantity will vary depending on the relative changes in supply and demand. If the decrease in demand is greater than the increase in supply, the equilibrium quantity will decrease. If the increase in supply is greater than the decrease in demand, the equilibrium quantity will increase.
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Menu costs refer to:
A. the money, time, and opportunity used to change prices to keep pace with inflation. B. the time, money, and effort one has to spend managing cash in the face of inflation. C. being penalized via taxes for making more money in dollars, even though real purchasing power hasn't changed. D. labor costs associated with inflation.
The government's choices regarding the overall level of government purchases and taxes is known as _____
Fill in the blank(s) with correct word
If demand is inelastic and the price of a product decreases by 100 percent, then
A. the change in quantity demanded is equal to 100 percent. B. the change in quantity demanded is greater than 100 percent. C. the decrease in quantity demanded is greater than 0 percent. D. the change in quantity demanded is less than 100 percent.
Refer to the below table for a certain product's market in Econland. If the world price of the product were $6 and a tariff of $1 per unit were applied to imports of the product, then the tariff would generate government revenues of:
A. $600
B. $400
C. $800
D. $1,200