If the market supply increases and, simultaneously, market demand decreases, the new equilibrium will show:
a. market price will decrease, and market quantity exchanged could increase, decrease, or remain unchanged.
b. market price will increase, and market quantity exchanged will decrease.
c. market price will increase, and the quantity exchanged could increase, decrease, or remain the same.
d. market price could increase, decrease, or remain the same, and quantity exchanged will increase.
e. market price will increase, decrease, or remain the same, and quantity exchanged will decrease.
a
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The tables above show the marginal costs and benefits from production of paper. If the efficient level of output is achieved by imposing a tax on paper producers, the government collects tax revenue equal to
A) $64,000. B) $56,000. C) $72,000. D) $48,000.
The mayor of Newton is considering proposals to deal with an unsafe intersection. She could install a traffic light at a cost of $50,000 or she could install stop signs at a cost of $5,000 . The traffic light is expected to reduce the risk of fatality
by 0.45 percent and the stop signs are expected to reduce the risk of fatality by 0.054 percent. If the value of human life is estimated to be $10 million, what choice should the mayor make? Briefly explain.
"The level of employment in an economy determines its real GDP, other things held constant." Do you agree or disagree? Why? What assumptions are necessary for your conclusion based on the classical model?
What will be an ideal response?
The fact that the prices for McDonald's Big Mac sandwich are not the same around the world illustrates one reason why purchasing power does not hold: Many goods are not traded internationally
Indicate whether the statement is true or false