Explain what would happen to the equilibrium price and quantity of oranges if the supply of oranges increased while the demand for oranges decreased
What will be an ideal response?
Equilibrium price would decrease. Equilibrium quantity would depend on which change was larger. If the supply increase was larger than the demand decrease, equilibrium quantity would increase. If the demand decrease was larger than the supply increase, equilibrium quantity would decrease.
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Krystal runs a nail salon and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour. Suppose that we observe Krystal staying open 4 hours per day
If she is following the marginal principle, what must her marginal benefit be? A) $12 B) $18 C) $24 D) $30
Which of the following is one of the balance of payments accounts?
A) government expenditure account B) capital and financial account C) reserve account D) net borrowing account
Robinson spends all his income on mangos and bananas. Mangos cost $3 per pound. Robinson's marginal utility is 30 for the last pound of mangos purchased and 10 for the last pound of bananas
If Robinson maximizes his utility from consuming these goods, the price of bananas is A) $0.50 per pound. B) $1 per pound. C) $2 per pound. D) $3 per pound.
If, at the current exchange rate between the dollar and the Norwegian kroner of 5.78 kroner per dollar, the dollar is "overvalued," how do you expect demand and supply in the foreign exchange markets to respond?
A) The demand for the dollar will fall, while the supply of the kroner will rise. B) The demand for the dollar will rise, while the supply of the kroner will fall. C) The supply of the dollar will rise, while the demand for the kroner will fall. D) The supply of the dollar will rise, while the demand for the kroner will rise.