When supply falls and demand remains the same, equilibrium price _______ and equilibrium quantity __________.
Fill in the blank(s) with the appropriate word(s).
rises; falls
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The Coase Theorem asserts that government intervention is a prerequisite for addressing externality problems
Indicate whether the statement is true or false
An decrease in quantity supplied is represented by a leftward shift of the supply curve
Indicate whether the statement is true or false
Suppose all prices decrease by 5 percent in the year while the total sales of laptops remain constant. This is
A) a violation of the law of demand since fewer laptops should be purchased at a higher price. B) a violation of the law of demand since more laptops should have been purchased with higher incomes. C) not a violation of the law of demand since the relative price of laptops did not change. D) not a violation of the law of demand since the law of demand does not apply to expensive goods like laptops.
Which of the following is NOT a problem in the implementation of industrial policies?
A) Choosing the industry to target B) Knowing the optimum amount of resources to provide the targeted industry C) The encouragement of rent seeking by firms in other industries D) The benefits are partly captured by foreign firms. E) All of the above are problems.