A new medical study reports that washing your hair everyday increases the probability of baldness. Predict the effects of this report on the market for shampoo
What will be an ideal response?
This will cause a decrease in the demand for shampoo. The demand curve will shift to the left, lowering both the equilibrium price and the equilibrium quantity of shampoo sold.
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For a ten-year $1,000,000-face-value zero-coupon Treasury bond, how does its market price change when the interest rate goes from 6.84% to 6.92%?
A) A fall of $1192 B) A fall of $3848 C) A fall of $8000 D) A rise of $8000
Mary increases her consumption of Good X after the price of Good Y decreased. For Mary
A) Good X and Good Y are substitutes. B) Good X and Good Y are complements. C) Good X is an inferior good. D) Good Y is an inferior good.
United States coins and currency are backed by
A. reserves of foreign currencies. B. confidence that they will retain their value. C. silver. D. gold.
Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential