If the income of buyers increases and a company maintains the same price, what is the most likely impact on quantity sold? Explain. Draw a graphical display of the result.
What will be an ideal response?
The most likely result will be an increase in demand, so that quantity will increase at all prices. The graph should look like Figure 6-5 in the text.
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Less than 50% of two-parent poor families have income from earnings
Indicate whether the statement is true or false
The difference between basic and applied research is that: a. basic research does not promote resource productivity while applied research does. b. applied research does not promote resource productivity while basic research does. c. basic research has less immediate payoff to society than applied research typically does. d. basic research occurs in science, while applied research occurs in
industry. e. only the government promotes basic research.
Government spending increases by $80 billion and the equilibrium level of output increases by $320 billion. The government spending multiplier
A. is 4. B. is 5. C. is 6. D. cannot be determined from this information, because the MPC is not given.
If the natural monopoly shown in the figure above is unregulated, then consumer surplus will be
A) $0. B) $4 million. C) $8 million. D) $16 million.