If the supply of coffee falls due to bad weather conditions in coffee-exporting countries, then the
a. price and quantity will rise
b. price and quantity will fall
c. price will fall and quantity will rise
d. price will rise and quantity will fall
e. quantity will fall, but price may rise or fall
D
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Which of the following events challenged Keynesian views, and led to the popularity of Milton Friedman's ideas?
a. The hippie community started advocating socialist values. b. Hard-core republicans came into office. c. The U.S. economy faced high levels of inflation and unemployment simultaneously. d. The oil crisis exploded. e. Countries that followed Friedman's ideas performed better.
If MU a /P a = 100/$35 = MU b /P b = 300/? = MU c /P c = 400/?, the prices of products B and C in consumer equilibrium:
A. cannot be determined from the information given. B. are $105 and $140 respectively. C. are $105 and $175 respectively. D. are $100 and $200 respectively.
Which of the following statements about taxes and government spending is correct?
A. Despite the overall progressive tax system, government expenditures disproportionately favor the rich and result in a system that is slightly regressive. B. The progressive tax system is almost perfectly offset by regressive expenditures, making the overall system proportional. C. The regressive tax system is offset by expenditures directed toward lower-income households, making the overall system proportional. D. The overall system of taxes and spending is progressive, as over $1 trillion per year gets transferred from upper-income households to lower- and middle-income households.
If a firm supplies 200 units at a price of $50 and 100 units at a price of $40, using the midpoint method, what is the price elasticity of supply?
A) 0.33 B) 1.00 C) 3.00 D) 5.00 E) 8.50