If the demand for a product rises and the supply stays the same
A) the market clearing price will fall and the equilibrium quantity will rise.
B) the market clearing price will rise and the equilibrium quantity will fall.
C) both the market clearing price and the equilibrium quantity will fall.
D) both the market clearing price and the equilibrium quantity will rise.
D
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Explain why the socially optimal output is not always the same as the market output.
What will be an ideal response?
The scarcity of physical resources such as fuel means:
a. we should keep our homes cooler in the winter b. we should keep our homes warmer in the summer c. we should live close to our jobs to conserve fuel d. all of these are true.
The quantity of Blu-Ray players purchased declined in spite of a decline in price. This implies that the
a. supply curve for Blu-Ray players shifted to the left. b. demand curve for Blu-Ray players shifted to the right. c. demand curve for Blu-Ray players shifted to the left. d. supply curve for Blu-Ray players shifted to the right.
During periods when the inflation rate fluctuates widely,
a. all relative prices increase at the same rate, leaving money prices constant b. economic efficiency increases because decision makers pay closer attention to changes in money prices c. uncertainty about changes in relative prices causes a decrease in economic efficiency d. all money prices increase at the same rate, leaving relative prices constant