Consider the market for portable air conditioners in equilibrium. When a heat wave strikes the equilibrium price
a. and quantity both decrease.
b. and quantity both increase.
c. increases, and the equilibrium quantity decreases.
d. decreases, and the equilibrium quantity increases.
b
You might also like to view...
In the United States, if a customer at HDFC bank writes a check and the recipient of the check deposits the check in Citibank, then the check is cleared by:
A) Citibank. B) the Fed. C) HDFC bank. D) either HDFC bank or Citibank.
Thinks about your own purchases. Consumer surplus
a. exists only rarely b. exists on every purchase that a consumer makes c. never exists—it's only a theoretical concept d. is received only if a good generates a utility higher than expected e. is earned on many of the purchases a consumer makes
If the total cost function is TC = Q3 - 6Q2 + 14Q + 75, at what output is the AVC = MC?
What will be an ideal response?
Suppose an individual experiences a permanent increase in income. As a result of this increased income, further assume that the individual eats dinner at restaurants more frequently each month. This information suggests that dinners at restaurants for this individual are
A. a substitute good. B. an inferior good. C. a normal good. D. both complimentary and inferior.