Which of the following examples would most likely result in a decrease in demand with no immediate effect on supply?
a. A study shows that a brand of soft drink causes cancer.
b. A study shows that eating olives significantly reduces heart disease.
c. A drought has a devastating effects on the corn crop.
d. A factory fire reduces the production of motorcycles.
a. A study shows that a brand of soft drink causes cancer.
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Juanita goes to the Hardware Emporium to buy a new circular saw. She is willing to pay $120 for a new saw, but buys one on sale for $85. Juanita's consumer surplus from the purchase is
A) $35. B) $85. C) $120. D) $205.
Colorado experiences a record snowfall during the winter season. What impact will this have on the market for snowmobiles?
a. The supply of snowmobiles will increase and the price of snowmobiles will increase. b. The supply of snowmobiles will increase and the price of snowmobiles will fall. c. The demand curve for snowmobiles will decrease and the price of snowmobiles will fall. d. The demand curve for snowmobiles will increase and the price of snowmobiles will rise.
Which of the following countries fell victim to contagion during the Asian financial crisis?
A. Malaysia, South Korea, and Taiwan B. Indonesia, Malaysia, and the Philippines C. Malaysia, the Philippines, and Taiwan D. All of these countries were hurt during the crisis.
In the diagram, the economy's relevant aggregate demand and immediate-short-run aggregate supply curves, respectively, are lines:
A. 4 and 3.
B. 4 and 1.
C. 2 and 4.
D. 2 and 3.