Recall the Application about the decrease in price of illegal drugs in the United States to answer the following question(s).Recall the Application. If the decrease in price of illegal drugs is primarily due to a change in supply, the equilibrium quantity of drugs:
A. will increase.
B. will decrease.
C. will not change.
D. may or may not change.
Answer: A
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During the first 6 months of 2008, the European Union (EU) initiated an anti-dumping case against China for imports of taper candles. What is dumping?
A) when China sells its candles to the EU at a lower price than China's cost of production B) when China does not pay the tariff on the candles C) when China sells its candles to the EU at a lower price than other producers D) when China tries to sell more candles to the EU than is allowed by the import quota
Which of the following statements is consistent with a decrease in supply?
A) Prices of raw material inputs have increased. B) There has been an advance in technology. C) Consumers' incomes have increased. D) The market price has decreased.
In the 1950's and 1960's the European unemployment rate tended to be ________ the U.S. unemployment rate, while in the 1990's the European unemployment rate tended to be ________ the U.S. unemployment rate.
A. lower than; lower than B. lower than; higher than C. higher than; higher than D. higher than; lower than
Refer to the information provided in Figure 14.1 below to answer the question(s) that follow.
Figure 14.1Refer to Figure 14.1. Six chewing gum producing firms form a cartel. The firms have identical cost structures. If the cartel produces the profit-maximizing output level, each firm should produce
A. 2,000 packs of chewing gum. B. 6,000 packs of chewing gum. C. 12,000 packs of chewing gum. D. indeterminate output levels from this information.