A general equilibrium analysis of a price change in the corn chip market would include an investigation of the impacts in
A) the television market.
B) the coffee market.
C) the salsa market.
D) All of the above.
C
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Holding other factors constant, if the income tax is replaced with a consumption tax so that saving is not taxed, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.
A. increase; increase B. increase; not change C. decrease; increase D. increase; decrease
Which of the following leads to an increase in the quantity supplied but not an increase in supply?
A) an increase in the product's price B) a decrease in the costs of production C) an advance in the technology used to produce the good D) an increase in the number of firms producing the good or service E) an increase in the price of another product that the suppliers can produce
Moving downward along a linear (straight-line) downward-sloping demand curve, the
A) price elasticity of demand does not change. B) quantity demanded decreases. C) demand becomes more elastic. D) demand becomes less elastic. E) total revenue never changes.
Which of the following would cause the investment demand curve to shift?
a. Animal spirits (expectations). b. Technological change. c. Change in business taxes. d. All of these.