Assume that in the market for bottled water, the market supply is QS = 14 + 20P and the market demand is QD = 74 – 10P. This means that the equilibrium quantity is
a. 2 b. 54 c. 6 d. none of the above
b. 54
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What will cause the equilibrium point to move from E1 to E2?
a. a downward movement, or decrease, in price from P1 to P2
b. an upward movement, or increase, in price from P2 to P1
c. a leftward movement, or decrease, in quantity from Q2 to 0
d. a rightward movement, or increase, in quantity from Q2 to Q1
Does this production function, q = 10L0.5K0.3, experience increasing, decreasing or constant returns to scale?
A) Decreasing because a 100% increase in inputs increases outputs by 80%. B) Increasing because an 80% increase in inputs increases outputs by 100%. C) Decreasing because 0.5 + 0.3 < 1. D) A and C.
GDP would be a better measure of economic well-being if it included:
A. the value of leisure. B. the market value of final goods. C. the total value of intermediate goods. D. the costs of education.
Which of the following is likely to bring about a movement along the supply curve for oranges?
A) A change in weather conditions B) A change in the price of fertilizer C) A change in wages paid to orange pickers D) A change in the price of oranges E) A change in the demand for grapefruit