The figure above shows the market for milk. If a drought lowers the productivity of dairy cows so that they give less milk, then the efficient quantity of milk ________ and the consumer surplus ________
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
D
You might also like to view...
According to this Application, the argument that the broken window is good for society only works
A) in theory, but never in reality. B) if the economy is operating above full employment where too few resources ae available. C) if the economy is operating at full employment where resources are fully employed. D) if the economy is operating below full employment where resources are underemployed.
An IMF official was quoted as acknowledging that the Fund's stabilization packages have often led to adjustment without growth
However, he said, "the Fund is a firefighter not a carpenter, and you cannot expect the firefighter to rebuild the house as well as put out the fire." Provide a balanced evaluation of this statement.
All other things unchanged, a decrease in the value of the dollar against the euro _______ U.S. net exports and shifts the aggregate demand curve to the _______.
A. increases, right B. decreases, right C. increases, left D. decreases, left
Property promised to the lender as compensation if the borrower defaults is called
A) collateral. B) deductibles. C) restrictive covenants. D) contingencies.