If demand increases and supply decreases, but supply decreases more than demand increases,
a. equilibrium price will fall.
b. equilibrium quantity will fall.
c. quantity sold will increase.
d. the quantities of both demand and supply will increase.
b. equilibrium quantity will fall.
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In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can. Why does the state pay people to return bottles? In your answer, be sure to mention the role played by rational choice
What will be an ideal response?
The figure above shows the market for umbrellas in Sunville. Suppose the quantity of umbrellas currently traded in Sunville is 199 per day. If one more umbrella is sold, the total surplus in Sunville will
A) decrease by $26.67. B) increase by $26.67. C) increase by $50.00. D) not change.
Scalping at major sporting events is an example of
A) a surplus caused by the existence of price ceilings. B) the operation of rationing by the market. C) a black market caused by a price ceiling. D) a black market caused by a price floor.
If your taxable income was $50,000 and you had an average tax rate of 20 percent, how much tax did you pay?
What will be an ideal response?