After a hurricane in Florida knocked out the regional water supply for several days, the demand for bottled water increased sharply. In a market economy, how will this increase in demand affect the equilibrium price and quantity of bottled water?
A. Price will increase, and quantity will decrease.
B. Price will decrease, and quantity will decrease.
C. Price will decrease, and quantity will increase.
D. Price will increase, and quantity will increase.
Answer: D
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Ticket “scalping” is an example of
A. experimental economics. B. the limitation of the volume of transactions. C. the development of a black market. D. favoritism.
The sign of the elasticity computation is important because the value of the price elasticity can be negative or positive.
Answer the following statement true (T) or false (F)
By 2010, the U.S. economy had emerged from the recession that had begun in 2007. Despite an economic growth rate well above zero, unemployment showed little sign of declining much below ten percent
Focusing on the definition of the unemployment rate, explain how it is possible to have positive economic growth without declining unemployment.
The Granger Cases of the 1870s
(a) sealed the fate of the U.S. railroad system, even though the cases were covered under a case involving a grain elevator. (b) came before the U.S. Supreme Court because state legislatures had passed laws in the 1870s to allow state agencies to control various aspects of railroad operation, including rate setting; these laws were then challenged by railroad companies. (c) established the principle that railroads were unquestionably subject to permanent regulation. (d) are true for all of the above.