Which of the following changes to the market in the graph shown could cause the price floor to become non-binding?
A. Demand could decrease, and shift to the left.
B. Supply could increase, and shift to the left.
C. Supply could increase, and shift to the right.
D. Supply could decrease, and shift to the left.
D. Supply could decrease, and shift to the left.
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If water quality law prevents the achievement of the efficiency criterion
a. that law must be repealed b. a “second-best” economic solution is to identify cost-effective policy initiatives c. cost-effectiveness is also prevented d. polluting sources should abate up to the point where total social benefits are maximized
In which case can we be sure that real GDP and the price level rise in the short run?
a. foreign economies expand and taxes increase. b. foreign economies expand and taxes decrease. c. foreign economies contract and taxes decrease. d. foreign economies contract and taxes increase.
If consumer tastes are changing more in favor of the consumption of a particular good the:
A. market demand curve will shift to the left. B. consumer will move up a given demand curve, decreasing the quantity demanded. C. maket demand curve would shift to the right. D. consumer would move down a given demand curve, increasing the quantity demanded.
If there is a decrease in demand for lettuce, we would expect:
A. both the price and quantity sold to increase. B. both the price and quantity sold to decrease. C. the price to decrease and the quantity sold to increase. D. the price to increase and the quantity sold to decrease.