An increase in both supply and demand causes which of the following?
a. equilibrium price falls
b. equilibrium price rises
c. equilibrium price change is indeterminate
d. equilibrium quantity decreases
e. equilibrium quantity change is indeterminate
C
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In an attempt to limit the supply of illegal liquor, the Russian government has restricted sugar availability (sugar is used to increase alcohol content). Russians also like to sweeten their tea with jam, another product made using sugar. Which graph in Figure 4-11 depicts the impact of sugar rationing on the Russian tea market?
A. 1 B. 2 C. 3 D. 4
Utility as an economic term refers to
a. the amount of electricity generated. b. the ability of a good to satisfy a want. c. tangible goods only. d. services only.
A major characteristic of the theory of oligopoly is that:
a. there are no real-world examples. b. the reactions of each firm depends on how the firm believes rivals will react. c. in reality few oligopolies survive more than 10 years. d. none of these.
The free rider problem suggests that a producer will tend to: i. produce more than the optimal quantity of a public good. ii. produce less than the optimal quantity of a public good. iii. produce the optimal quantity of a public good if it is funded out of tax revenue
a. (i) only b. (ii) only c. (i) and (iii) only d. (ii) and (iii) only