Suppose there is an increase in both the supply and demand for personal computers. Furthermore, suppose the supply of personal computers increases more than demand for personal computers. In the market for personal computers, we would expect the
a. equilibrium quantity to rise and the equilibrium price to rise.
b. equilibrium quantity to rsie and the equilibrium price to fall.
c. equilibrium quantity to rise and the equilibrium price to remain constant
d. equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.
e. change in the equilibrium quantity to be ambiguous and the equilibrium price to rise.
b. equilibrium quantity to rise and the equilibrium price to fall.
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Price discrimination
A) eliminates the producer surplus. B) turns consumer surplus into producer surplus. C) decreases output below the profit-maximizing level. D) lowers a monopoly's economic profit.
The United States usually exports ________ goods than it imports and exports ________ services than it imports
A) fewer; more B) more; fewer C) fewer; fewer D) more; more
Keynes felt that the economic effects of business confidence, for example a loss confidence shifting the ________ curve to the left, were of ________ importance
A) IS, major B) IS, minor C) LM, major D) LM, minor
With few applicants and several key positions to fill, the owner of a commercial bakery increased the starting wage offered from $12.00 to $15.00 per hour and was able to fill the positions. Which of the following is true of the $12.00 wage rate?
a. The wage is lower than equilibrium. b. The wage is at equilibrium. c. The wage created a surplus. d. The wage attracted just enough workers.