Which of the following could decrease the equilibrium price but increase the equilibrium quantity of apples?
a. Higher wages are paid to the agricultural workers who harvest the apples.
b. A rise in the cost of treating pests destroying apples.
c. Many new apple orchards are planted.
d. An increase in the market supply of grapefruit.
c. Many new apple orchards are planted.
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Why do nations engage in international trade?
What will be an ideal response?
A voluntary export restraint is an agreement negotiated between two countries that places a numerical limit on the quantity of a good that can be imported by one country from the other country
Indicate whether the statement is true or false
Gordon characterizes Modigliani as a prominent activist yet several implications of his life cycle hypothesis support the non-activists. One of these implications is
A) transitory increases in income associated with the business cycle are not expected to last a lifetime so current consumption is relatively stable. B) permanent increases in income associated with the business cycle are not expected to last a lifetime so current consumption is relatively stable. C) transitory increases in income associated with the business cycle are not expected to last a lifetime so current consumption is relatively unstable. D) transitory increases in income associated with the business cycle are to last a lifetime so current consumption is relatively stable.
The basic reason for the multiplier effect is that, when you spend money,
a. another person receives income. b. another person must pay for it. c. your money balances are reduced. d. your net worth decreases.