Recall the Application about the decrease in price of illegal drugs in the United States to answer the following question(s).Recall the Application. If it is not known whether the decrease in price of illegal drugs is primarily due to a change in supply, a change in demand, or equal changes in both, the equilibrium quantity of drugs:
A. will increase.
B. will decrease.
C. will not change.
D. may or may not change.
Answer: D
You might also like to view...
Which one of the following items is not accounted for in the flow of "net taxes" in the circular flow model with a government sector?
A. Salaries to military personnel, public school teachers, and government inspectors B. Transfer payments such as Social Security benefits C. Subsidies to farmers, airlines, and others D. Proprietary income generated by public utilities and state lotteries
A politician says that the government should tax behavior they want less of and subsidize behavior they want more of. This is an example of
A. cynical behavior in modern democracies. B. a concern that people are not rational when they make decisions. C. failing to consider the alternatives available to the government. D. using incentives to alter behavior.
If the price were $20, what would the firm do in the (a) short run? (b) long run?
If the 4 largest cereal companies' total sales are $19 billion, and the industry's total sales are $55 billion then the Four-Firm Concentration Ratio is
A. 34.55%. B. 2.89%. C. 28.95%. D. 0.35%.