A decrease in the demand for eggs due to changes in consumer tastes, accompanied by a decrease in the supply of eggs as a result of an outbreak of Avian flu, will result in
A) a decrease in the equilibrium price of eggs and no change in the equilibrium quantity.
B) a decrease in the equilibrium price of eggs; the equilibrium quantity may increase or decrease.
C) a decrease in the equilibrium quantity of eggs; the equilibrium price may increase or decrease.
D) a decrease in the equilibrium quantity of eggs and no change in the equilibrium price.
C
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A firm's labor demand curve is also its marginal revenue product curve. For both the perfectly competitive firm and the output price maker, the labor demand curve slopes downwards
However, there is a difference in the reasons why the labor demand curve slopes downwards. What is this difference?
According to the classical model, money influences
a. only prices. b. nominal and real variables in both the long and short-run. c. both nominal and real variables but only in the short-run. d. only nominal variables.
If a country allows trade and, for a certain good, the domestic price without trade is higher than the world price, which of the following conclusions can be made?
What will be an ideal response?
The Constitution of the United States says nothing about state economic activity.
A. True B. False C. Uncertain