If the demand for jelly increases, and the price of grapes (used to make jelly) rises
A) the equilibrium quantity of jelly falls and the equilibrium price of jelly might rise or fall.
B) the equilibrium price of jelly falls and the equilibrium quantity of jelly might rise or fall.
C) the equilibrium price of jelly rises and the equilibrium quantity of jelly might rise or fall.
D) the equilibrium price of jelly falls and the equilibrium quantity of jelly rises.
C
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Refer to the figure above. If a price control is imposed at $8, what is the new consumer surplus in the market?
A) $115 B) $125 C) $130 D) $175
The legislation that effectively prohibited banks from branching across state lines and forced all national banks to conform to the branching regulations in the state in which they reside is the
A) McFadden Act. B) National Bank Act. C) Glass-Steagall Act. D) Garn-St.Germain Act.
Geographic restrictions on banks
A) reduce their ability to take advantage of economies of scale. B) raise the costs of their providing risk-sharing, liquidity, and information services. C) reduce their exposure to credit risk. D) reduce the amount of local lending they undertake.
The characteristic that distinguishes a monopolistically competitive market from a perfectly competitive market is the:
a. ease of entry. b. number of firms operating in the market. c. degree of government regulation in the activities of the firms. d. differentiation of products. e. extent of market share of each firm.