Which of the following examples would lead to a lower equilibrium price?
a. a report showing the health advantages of eating organic produce
b. beef contaminated with a deadly disease
c. an earthquake destroying a rice crop
d. a tsunami wiping out a pineapple crop
b. beef contaminated with a deadly disease
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Game theory is most useful in understanding the decision making behavior of firms in which type of industry?
a. perfect competition b. monopoly c. monopolistic competition d. natural monopoly e. oligopoly
In recent years, the Federal Reserve has conducted policy by setting a target for the
a. size of the money supply. b. growth rate of the money supply. c. federal funds rate. d. discount rate.
In 2009, there was an unlikely boom in British cross- Channel grocery deliveries to France due to:
a. an increase in French income. b. an increase in French preferences for British food items. c. crop failures in France due to a year-long drought. d. a dramatic weakening of the British pound against the euro over the previous 18 months.
How are demand-pull and cost-push inflation reflected in terms of the AD-AS model?
What will be an ideal response?