Which of the following is likely to result in a smaller equilibrium quantity exchanged?
a. An increase in both demand and supply
b. A decrease in both demand and supply.
c. An increase in demand and a decrease in supply.
d. A decrease in demand and an increase in supply.
b
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The Chicago Heights school district study found that
A) teachers have a low occurrence of moral hazard. B) students did much better with a teacher who received merit pay. C) adverse selection results among teachers with poor students. D) teachers did not response to pay incentives.
Pretty Polly produces dresses for little girls. If Pretty Polly's advertising campaign becomes more effective, the demand for Pretty Polly's dresses will ________ and Pretty Polly's marginal benefit curve from advertising shifts to the ________.
A) decrease; left B) decrease; right C) increase; left D) increase; right
Bill the butcher is upset because the government plans to tax beef $.10 a pound. "I hate paying taxes," he says. "Because of this, I'm raising all my beef prices by $.10 a pound. The consumers will bear this burden, not me." Do you see anything wrong with this way of thinking? Explain
When the dollar "cost" of a unit of foreign currency falls, the dollar is against the foreign currency.
a. depreciating b. appreciating c. equalizing d. holding its own