Recall the Application about the harmattan and how it affects the price of cocoa to answer the following question(s).According to this Application, the recent result of the harmattan was to ________ the equilibrium price and ________ the equilibrium quantity of cocoa.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: B
You might also like to view...
The basic equation for a bank’s balance sheet is ____.
A. assets = liabilities ? net worth B. net worth = assets ? liabilities C. net worth = assets + liabilities D. liabilities = net worth + assets
At the output level that maximizes economic surplus
A. consumer surplus exceeds producer surplus by the greatest amount. B. marginal benefit exceeds marginal cost by the greatest amount. C. the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output. D. the areas of consumer and producer surplus necessarily are equal.
The housing market of the early to mid-2000s did not feature:
a. "teaser rates" on home mortgages. b. a dramatic rise in housing prices. c. widespread calls to end "predatory" lending practices. d. "subprime" mortgages.
If a firm reacts to other firms' market decisions by anticipating how the other will then react, this is:
a. not profit-maximizing behavior b. a monopolistic competitive market c. a market with a low concentration ratio d. mutual interdependence e. collusion by definition