Refer to the figure below. Suppose the solid line shows the current demand curve for coffee. In response to an announcement that much of next year's coffee crop has been destroyed by a storm in Brazil, you should expect: 
A. the demand curve to shift to D(A) in anticipation of higher future prices.
B. the demand curve to shift to D(B) in anticipation of higher future prices.
C. an increase in the quantity of coffee demanded, but no shift in the demand curve.
D. neither a change in quantity demanded nor a shift in demand because next year's coffee crop will not affect the current demand for coffee.
Answer: B
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
The above figure shows the apartment rental market in Bigtown. If severe flooding resulted in the destruction of many of the city's apartment buildings, then the
A) supply curve of apartments would shift leftward and rent would rise above $750.00. B) demand curve for apartments would shift rightward and rent would rise above $750.00. C) equilibrium quantity of apartments rented would increase beyond 3,000. D) equilibrium market price of apartments rented would fall below $750.00.
If the labor supply curve is nearly vertical, a tax on labor
a. has a large deadweight loss. b. raises a small amount of tax revenue. c. has little impact on the amount of work that workers are willing to do. d. results in a large tax burden on the firms that hire labor.
Pollution is an example of an _____________ cost.
Fill in the blank(s) with the appropriate word(s).