The price of cotton rises. What happens in the market for cotton shirts?
A) The equilibrium price falls and the equilibrium quantity rises.
B) The equilibrium price rises and the equilibrium quantity falls.
C) The equilibrium price and quantity rise.
D) The equilibrium price and quantity fall.
Ans: B) The equilibrium price rises and the equilibrium quantity falls.
You might also like to view...
The process of converting a future amount of money into its value today is called
A) trending. B) depreciation. C) discounting. D) compounding.
Refer to Figure 6-9. The data in the diagram indicates that DVDs are
A) luxury goods. B) inelastic goods. C) necessities. D) both luxury goods and inelastic goods. E) both necessities and inelastic goods.
By participating in international financial markets, a nation can finance its government budget deficit in part by ________, which ________ the link between the nation's deficit and its internal private investment
A) buying foreign assets, strengthens B) buying foreign assets, weakens C) selling assets to foreigners, strengthens D) selling assets to foreigners, weakens
Why should the United States be concerned over a sharp depreciation of the U.S. dollar in the world marketplace?
What will be an ideal response?