Suppose demand is perfectly elastic, and the supply of the good in question decreases. As a result,
a. the equilibrium quantity decreases, and the equilibrium price is unchanged.
b. the equilibrium price increases, and the equilibrium quantity is unchanged.
c. the equilibrium quantity and the equilibrium price both are unchanged.
d. buyers' total expenditure on the good is unchanged.
a
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The efficient quantity of a public good is the quantity that sets the marginal social benefit from the good equal to the good's marginal social cost
Indicate whether the statement is true or false
"Laboratories of democracy" refers to the fact that having many governments at different levels _____
a. allows for experimentation b. allows for replication of successful policies c. allows for the optimal provision of scientific knowledge d. a and b
In general, the only thing that can cause a sustained increase in the rate of inflation is: a. a high rate of growth in the supply of money. b. a significant increase in unemployment
c. a decrease in real GDP. d. an increase in federal income taxes.
Differences in production efficiencies among nations in producing a particular good result from:
A. different endowments of fertile soil. B. different amounts of skilled labor. C. different levels of technological knowledge. D. all of these.