Given that diesel cars get much better gas mileage than the typical car, an increase in the price of gasoline would be expected to:
A. decrease the demand for diesel cars.
B. increase the demand for diesel cars.
C. increase the demand for gasoline.
D. decrease the demand for gasoline.
Answer: B
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Because unemployment is a macroeconomic topic, an increase in unemployment would not be expected to have any impact on the equilibrium price or quantity in the market for an individual good
Indicate whether the statement is true or false
Economic games can be used to analyze decisions around which of the following situations?
A. War B. Business C. Environmental protection D. All of these situations.
Suppose that the wage for drive-thru clerks is $7 an hour at Burger King and $6.50 at McDonald's. The jobs are alike in all other respects. We would expect
a. an increase in the supply of and demand for drive-thru clerks at Burger King b. an increase in the supply and a decrease in the demand for drive-thru clerks at Burger King c. a decrease in the supply of drive-thru clerks at Burger King but no change in demand d. an increase in the supply of drive-thru clerks at Burger King but no change in demand e. a decrease in the supply of and demand for drive-thru clerks at Burger King
Suppose McDonald's puts up five new stores in San Francisco using the exact same floor plan, capital equipment and number of workers, then the long run average cost curve of McDonald's would be ________ and the company experiences ________.
A. horizontal; constant returns to scale B. horizontal; economies of scale C. upward sloping; economies of scale D. horizontal; diseconomies of scale