In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An improvement in the technology used to produce X will:
A. decrease S, increase P, and decrease Q.
B. increase S, decrease P, and increase Q.
C. decrease S, increase P, and increase Q.
D. decrease D, decrease P, and decrease Q.
Answer: B
You might also like to view...
When the price of a sweet roll is $2, the bakery sells 300 rolls per week. If it raises the price to $3, then it sells 150 rolls per week. Based on this, the price elasticity of a sweet roll between these prices is
A. 0.40. B. 1 C. 1.67. D. 0.67.
In the RBC model, the importance of "intertemporal substitution" of labor supply is ________, which results in a rather ________ labor supply curve
A) denied, flat B) denied, steep C) emphasized, flat D) emphasized, steep
A monopoly exists when there is only one producer in an industry, and no close substitutes for the product exist
a. True b. False Indicate whether the statement is true or false
For a trade to take? place, a? buyer's willingness to pay must be? ____________.
A. higher than the? seller's willingness to accept. B. equal to the? seller's willingness to accept. C. lower than the? seller's willingness to accept. D. A and B only. E. All of the above.