Figure 3-7
In , suppose D1 and S1 indicate the initial conditions in the market for ice cream. Which of the following changes would tend to cause the shift from D1 to D2 in the market for ice cream?
a.
a decrease in the price of sugar, an ingredient used to produce ice cream
b.
an increase in the price of frozen yogurt, a substitute for ice cream
c.
abnormally cold weather that decreased consumer desire for ice cream
d.
an increase in the price of milk, an ingredient used to produce ice cream
b
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Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the
Three-Sector-Model? a. The GDP Price Index rises, and nominal value of the domestic currency falls. b. The GDP Price Index falls, and nominal value of the domestic currency rises. c. The GDP Price Index falls, and nominal value of the domestic currency falls. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The GDP Price Index rises, and nominal value of the domestic currency remains the same.
The Chinese protected its automobile industry through restrictive tariffs and quotas. Which of the following BEST describes this practice?
a. antidumping duties b. infant industry protection c. voluntary export restraints d. price discrimination
If the US dollar appreciates in the FOREX, US imports and exports are most likely to change in which of the following ways imports; exports
a increase; remain unchanged b. increase; increase c. increase; decrease d. decrease; remain unchanged e. decrease; decrease
In which antitrust case did the Supreme Court begin to apply the per se rule to determine whether a firm was in violation of the Sherman Antitrust Act?
A. The Standard Oil case. B. The Alcoa case. C. The IBM case. D. The MIT case.