One common mistake in applying the demand and supply framework is to confuse:
a. the shift of a demand or supply curve with movement along a demand or supply curve.
b. whether the supply or demand curve is impacted by the change.
c. the increase in demand with a shift in the supply curve.
d. the increase in supply with a shift in the demand curve.
a. the shift of a demand or supply curve with movement along a demand or supply curve.
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Which of the following would not be included in the gross private domestic investment (I) category of GDP?
a. A bakery's purchase of a new oven. b. A retailer's additions to its inventories. c. Newly built residential construction. d. A bank's purchase of a U.S. Treasury bond.
The demand for fish today decreases if there are expectations that the price of fish may increase in the future
Indicate whether the statement is true or false
The supply curve shows the relationship between:
A. price and quantity supplied. B. production costs and the amount demanded. C. total business revenues and quantity supplied. D. physical inputs of resources and the resulting units of output.
Refer to the graph below, which shows the market for bicycles. S1 and D1 are the original supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply curves. Starting from the initial equilibrium (point 1), which point on the
graph is most likely to be the new equilibrium after an increase in wages of bicycle workers, and a significant increase in the price of gasoline?
A. 6
B. 3
C. 4
D. 5