If the demand for a product falls and the supply stays the same
A) the market clearing price will fall and the equilibrium quantity will rise.
B) the market clearing price will rise and the equilibrium quantity will fall.
C) both the market clearing price and the equilibrium quantity will fall.
D) both the market clearing price and the equilibrium quantity will rise.
C
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If a tax is placed on tires, then i. the equilibrium quantity of tires will decrease. ii. a deadweight loss will be created. iii. the producer surplus will decrease
A) i only B) ii only C) i and iii D) i and ii E) i, ii, and iii
In Figure 13-2 above, suppose that the Fed maintains a constant nominal money supply, commodity prices are fixed, and that commodity demand is unstable ranging from IS0 to IS1. Equilibrium Y would then range from
A) A0 to A1. B) B0 to B1. C) C0 to C1. D) Insufficient information.
The supply of loanable funds curve is downward sloping
a. True b. False
How does the principal-agent problem extend to managers and employees?
What will be an ideal response?