Ceteris paribus, an increase in the supply of a good causes which of the following?
a. Lowers the equilibrium price, and reduces the quantity bought and sold.
b. Raises the equilibrium price, and raises the quantity bought and sold.
c. Raises the equilibrium price, and increases the quantity bought and sold.
d. Lowers the equilibrium price, and increases the quantity bought and sold.
e. Equilibrium price and equilibrium quantity change are indeterminate.
d
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If households spend $0.40 of each additional dollar of increased income, the expenditure multiplier will be
A) 1.67. B) 2.5. C) 4. D) 6.
Using potentially productive resources to try and obtain transfers from the government is called _____
a. vote trading b. logrolling c. agenda control d. rent seeking
Alvin's utility function is U = W. Barry's utility function is U = W2. Carl's utility function is U = W0.5. Each has wealth of only $100. An investment of that $100 has a 10% chance of netting $1,000 and a 90% chance of netting a loss of that $100
Who among the three will make the investment?
Technology or production processes developed in a particular country:
A. may give that country a temporary comparative advantage. B. may set that country back until they earn back the research and development costs. C. will give that country a permanent comparative advantage. D. generally are not transferrable to other nations.