New cars are normal goods. What will happen to the equilibrium price of new cars if the price of gasoline rises, the price of steel falls, public transportation becomes cheaper and more comfortable, auto-workers accept lower wages, and automobile insurance becomes more expensive?
a. Price will rise.
b. Price will fall.
c. Price will stay exactly the same.
d. The price change will be ambiguous.
b
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In order to derive the market supply curve from individual supply curves, we add up the
A. various quantities that individual sellers are willing and able to supply at different prices. B. total number of sellers in the market at a given time. C. costs that all individual sellers incur in producing the product. D. various prices that individual sellers are charging for the quantities of the product available.
In Figure 3-4, for which of the following would this statement be true: “To get more apples we have to give up wheat.” A movement from
A. A to E. B. C to D. C. D to C. D. D to E. E. B to C.
Because the inflation rate is so high Wanda refuses to carry cash. Even though it is a bother, she now goes to the ATM twice as often to get the cash she needs. Wanda's actions are an example of the
A) tax distorting costs of inflation. B) uncertainty costs of inflation. C) tax costs of inflation. D) shoe-leather costs of inflation. E) confusion costs of inflation.
"A single-price monopoly will always charge a price that is on the elastic range of the demand for the monopoly's output." Explain why the previous statement is correct or incorrect
What will be an ideal response?