If the supply curve and the demand curve for lettuce both shift to the left by an equal amount, what can we say about the resulting changes in equilibrium price and quantity?
A) The price will increase, but the quantity may increase or decrease.
B) The price will increase, and the quantity will increase.
C) The price will decrease, and the quantity will increase.
D) The price will stay the same, but the quantity will increase.
E) The price will stay the same, but the quantity will decrease.
E
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In the 19th century, Russian peasants noticed that during cholera epidemics there were lots of doctors around; in an attempt to eliminate cholera, they killed all the doctors. This is an example of
a. mistaking correlation with causation. b. the fallacy of opportunism. c. excessive abstraction. d. rationality. e. marginal analysis.
The primary function of taxes is to
A. Correct inequities in the distribution of goods and services. B. Increase private saving. C. Transfer the command of resources from the private sector to the public sector. D. Increase the purchasing power of the private sector.
Rightward and upward shifts of the Phillips Curve in the 1970s and early 1980s were caused by:
A. adverse shocks to aggregate supply. B. adverse shocks to aggregate demand. C. an increase in the misery index. D. the Vietnam War.
Empirical evidence suggests that from 1960 until 2007, the velocity of money had, on average, been
A. constant. B. rising. C. fluctuating around zero. D. decreasing.