In which of the following situations will the equilibrium price of wheat increase and the change in the equilibrium quantity of wheat be indeterminate?
a. if supply and demand both decline
b. if supply and demand both rise
c. if supply declines and demand rises
d. if supply rises and demand declines
e. if supply remains constant and demand rises
C
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Aggregate demand
A) decreases if expected future income rises. B) increases if the exchange rate rises. C) increases if government expenditures decrease. D) increases if the expected inflation rate increases. E) increases if aggregate supply increases.
"A shortage is the same thing as scarcity." Do you agree or disagree with this statement? Why? What can cause a shortage to disappear in a market? What can cause scarcity to disappear?
What will be an ideal response?
Of the curves displayed in the graph shown, what does curve B most likely represent?
A. Marginal cost
B. Average total cost
C. Average variable cost
D. Average fixed cost
Which of the following statements is true?
a. Sales, excise, and flat-rate taxes violate the ability-to-pay principle of taxation fairness because each results in a greater burden on the poor than the rich. b. Government failure may occur if voters are rationally ignorant. c. Government failure may occur because of special-interest group political pressure. d. All of these.