If tastes for a good decreased and the price of a substitute good decreased at the same time, as a result:
a. prices would rise
b. prices would fall.
c. larger quantities to be exchanged.
d. we would not know which direction either prices or quantities exchanged would be altered without more information.
b
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With free trade between the United States and Canada, the United States exports tomatoes and Canada exports maple syrup. U.S. consumers ______
A. of tomatoes gain and Canadian consumers of maple syrup lose B. of both tomatoes and maple syrup gain more than either producer C. of maple syrup gain more than U.S. producers of maple syrup lose D. of tomatoes gain more than U.S. producers of tomatoes lose
If a consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S, we know that
A) the consumer's income is 250. B) the price of shelter is 5. C) the price of shelter is 5 times the price of food. D) All of the above.
It is appropriate to use the supply-and demand-model if, in a market
A) everyone is a price taker with full information about the price and quality of the good. B) firms sell identical products. C) costs of trading are low. D) All of the above.
In the globalized AS/AD model, the world supply curve is:
A. horizontal. B. vertical. C. downward-sloping. D. upward-sloping.