If demand increases and supply decreases
A) the market clearing price definitely will increase, and the equilibrium quantity definitely will increase.
B) the market clearing price definitely will increase, and the equilibrium quantity definitely will decrease.
C) the market clearing price definitely will increase, but the change in the equilibrium quantity cannot be determined without more information.
D) the equilibrium quantity definitely will decrease, but the change in the market clearing price cannot be determined without more information.
Answer: C
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There has recently been an increase in the price of dairy products used in the production of ice cream. High temperatures have also induced people to consume more ice cream
In the market for ice cream, the effects these changes will have on equilibrium price and quantity are A) price will increase, and quantity will decrease. B) price will increase, and the effect on quantity is indeterminate. C) price will decrease, and quantity will increase. D) price will decrease, and the effect on quantity is indeterminate.
Suppose Brandon's indifference curves are defined as U = (3/4)?FS + (1/4)?FH, where FS is consumption during sunny weather and FH is consumption during a hurricane. Further suppose Brandon receives 64 units of food when it is sunny and 16 units when there is a hurricane. What is the certainty equivalent of the expected food consumption bundle if the probability of sunshine is ? = 0.75?
A. 49 units of food B. 52 units of food C. 7 units of food D. 25 units of food
An example of term limits in the United States would be that U.S. presidents cannot hold more than:
A. four 2-year terms. B. four 4-year terms. C. two 4-year terms. D. two 2-year terms.