Suppose that there is an improvement in technology in the market for Samsung phones. Which of the following is TRUE?
A) Supply will increase and the market clearing price will fall.
B) Supply will increase and the market clearing price will rise.
C) Demand will increase and the market clearing price will rise.
D) Demand will increase and the market clearing price will fall.
Answer: A
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The management of a rental building faces a rent control situation, where it cannot charge more than $400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them. The management decides to only offer the furniture and apartment together for rent. This is an example of
a. Tying b. Bundling c. Exclusion d. Fraud
An inflationary gap refers to the gap between real GDP and potential GDP when the level of output is below the level of potential GDP
a. True b. False Indicate whether the statement is true or false
The terms scarcity and shortage are synonyms
Indicate whether the statement is true or false
What are the coordinates for point B?
a. P2; 800,000 bushels of wheat produced per day
b. P2; 500,000 bushels of wheat produced per day
c. P1; 500,000 bushels of wheat produced per day
d. P; about 250,000 bushels of wheat produced per day