A recent medical study reports new benefits of cycling. Simultaneously, the price of the parts needed to make bikes falls. If the change in supply is greater than the change in demand, the price will _________ and the quantity will _________
a. Rise, rise
b. Rise, fall
c. Fall, rise
d. Fall, fall
c
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In situations in which prices cannot be used to signal relative scarcities of goods, which of the following can serve as a rationing mechanism?
A) queuing B) political power C) random assignment D) all of the above
An exchange rate that varies according to supply and demand for the currency in the foreign exchange market is called a ________ exchange rate.
A. flexible B. nominal C. fixed D. real
Suppose the own price elasticity of demand for good X is ?5, and the quantity of good X decreases by 5 percent. What would you expect to happen to the total expenditures on good X?
A. Unchanged B. Decrease C. Increase D. Neither increase, decrease, nor remain unchanged
The reasons to study economics include which of the following?
A. to learn a way of thinking B. to understand society C. to be an informed citizen D. all of the above