Suppose consumer tastes and preferences shift from pizza to tacos. In the short run, these changing tastes will result in pizza restaurants ________ pizza prices and taco restaurants ________ taco prices.
A. increasing; decreasing
B. decreasing; increasing
C. decreasing; decreasing
D. increasing; increasing
Answer: B
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The gravity model suggests that over time
A) trade between neighboring countries will increase. B) trade between all countries will increase. C) world trade will eventually be swallowed by a black hole. D) trade between Earth and other planets will become important. E) the value of trade between two countries will be proportional to the product of the two countries' GDP.
It is always the case that players in a prisoner's dilemma situation will choose the Nash Equilibrium
a. True b. False Indicate whether the statement is true or false
Most economists agree that the aggregate demand curve is:
A. vertical. B. horizontal. C. relatively steep. D. relatively flat.
Suppose that the percentage change in demand is -20%, the price elasticity of demand is 3, and the price elasticity of supply is 2. What is the percentage change in the equilibrium price?
A. -4% B. 4% C. 100% D. -100%