Suppose that before S1 shifted, a typhoon destroyed a huge shipment of Quality Unlimited HD televisions, thereby reducing the supply of this product in the United States. Considering this scenario, what would be the new position of S2, and how else would this graph change?
a. S2 would shift left of S1, and Q1 would be indeterminate.
b. S2 would shift right of S1, and E2 would move even further down.
c. S2 would shift right of S1, and Q2 would move even further to the right.
d. S2 would shift left of S1, and P2 would be higher than P1.
d. S2 would shift left of S1, and P2 would be higher than P1.
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Changes in government purchases affect aggregate demand only indirectly through consumption spending
Indicate whether the statement is true or false
Gasoline stations regularly post their prices on large signs for consumers to see. This practice could also facilitate ______ in the industry.
a. price leadership b. tie-in sales c. mergers d. easy entry
The opportunity cost of watching television is:
A. all of the alternative programs that appear on other stations. B. zero because there is no money expenditure involved. C. the alternative use of the time foregone by watching the program. D. zero if it benefits you.