Assume that both the demand curve and the supply curve for MP3 players shift to the right but the supply curve shifts more than the demand curve. As a result
A) the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.
B) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease.
C) the equilibrium price of MP3 players will decrease; the equilibrium quantity will increase.
D) both the equilibrium price and quantity of MP3 players will decrease.
C
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If the government eliminated unemployment benefit payments what would be the effect on the level of real GDP and well being in the economy?
If marginal utility of apples is diminishing and is a positive amount, consuming one more apple will cause
A) a consumer to go beyond her optimal consumption of apples. B) total utility to decrease. C) a consumer to get no satisfaction from consuming apples. D) a consumer's total utility to increase.
According to classical economists, Say's law applies to a barter economy, but it does not apply to a money economy
Indicate whether the statement is true or false
If the exchange rate rises, the quantity of dollars demanded
A) increases and there is movement down along the demand curve for dollars. B) decreases and there is movement down along the demand curve for dollars. C) decreases and there is movement up along the demand curve for dollars. D) increases and there is movement up along the demand curve for dollars. E) does not change.