Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?
a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
b. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.
c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
d
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An example of a good that is both rival and excludable is
A) the defense services provided by a new stealth bomber. B) a pair of pants. C) a beautiful sunset. D) an uncrowded theme park such as Walt Disney World.
An improvement in the technology for producing a good will shift the supply curve for that good to the left.
Answer the following statement true (T) or false (F)
Cartels provide uniform management, but none of the advantages of economies of scale
a. True b. False Indicate whether the statement is true or false
The Lucas supply function, in combination with the assumption that expectations are rational, implies that
A. both anticipated monetary and fiscal policy changes will affect real output. B. neither anticipated monetary policy changes nor anticipated fiscal policy changes will have an effect on real output. C. an anticipated monetary policy change will have no effect on real output, but an anticipated fiscal policy change will have an effect on real output. D. an anticipated monetary policy change will have an effect on real output, but an anticipated fiscal policy change will not have an effect on real output.