When the demand and supply of grapes both decrease at the same time, we can safely predict that the:
a. price of grapes will fall
b. price of grapes will rise.
c. quantity of grapes exchanged will fall.
d. quantity of grapes exchanged will rise.
c
You might also like to view...
Economists consider the effects of free trade on income distribution to be ________ important than the effects on overall welfare because ________
A) less; those who are harmed can be compensated by those who gain B) more; those who are harmed are not compensated by those who gain C) less; the effects on income distribution are minor and inconsequential D) more; the effects on income distribution are major and consequential E) less; the wealthy benefit and only the poor lose
Consider Sam and Linda both drive a relatively inefficient sport utility vehicle (SUV). Sam has a lease that doesn't expire for three years whereas Linda owns her sport utility vehicle free and clear
If the price of gasoline was to increase by fifty percent, which of these statements is most likely true? A) Linda will have a less elastic response than Sam. B) Sam will have a less elastic response than Linda. C) Sam and Linda will have identically elastic responses. D) Sam will have a more elastic response than Linda.
Refer to Scenario 2.1. What is the equilibrium quantity of books sold?
A) 25 B) 50 C) 75 D) 100 E) none of the above
A tax that is imposed on an imported good is called a
A) tariff. B) quota. C) government license. D) patent.