What would happen to the equilibrium price and quantity of lattés if consumers' incomes rise and lattés are a normal good?
a. Both the equilibrium price and quantity would increase.
b. Both the equilibrium price and quantity would decrease.
c. The equilibrium price would increase, and the equilibrium quantity would decrease.
d. The equilibrium price would decrease, and the equilibrium quantity would increase.
a
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Import quotas ________ the price of imported goods and ________ the quantity consumed in the nation imposing the quota
A) raise; increase B) raise; decrease C) lower; increase D) lower; decrease
Explain the following: Risk results from the fact that more outcomes could happen than will happen.
What will be an ideal response?
Sue uses a credit card to purchase a new pair of jeans. Sue is:
A. creating a liability that she will ultimately have to pay with money. B. using a form of money included in M2. C. using money to buy her jeans since credit cards is money. D. using an electronic payment form of money.
Resources are allocated efficiently when
A. everyone can afford what they want. B. production occurs at least cost. C. profits are maximized. D. output is fairly distributed.