Ceteris paribus, if negotiations lead to lower wages for airline employees, what will be the result in the market for air travel?
a. an increase in equilibrium price and an increase in equilibrium quantity
b. an increase in equilibrium price and a decrease in equilibrium quantity
c. a decrease in equilibrium price and an increase in equilibrium quantity
d. a decrease in equilibrium price and a decrease in equilibrium quantity
c
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A model:
A) is often based on simplifying assumptions that are not necessarily true. B) can be tested without data or statistics. C) is a more complex representation of reality than a theory. D) can never be used to predict the future but helps explain the past.
An increase in the U.S. demand for imports will ________ the supply of dollars and lead the dollar to ________
A) increase; appreciate B) decrease; appreciate C) increase; depreciate D) decrease; depreciate
Consider the following scenario. Assume the price of gold in London is selling for $1400 an ounce while in New York it is fetching a price of $1450 an ounce
What would an economist say about the efficiency of this market? What would an economist predict about what would happen next?
If consumption is $800 when disposable income is $1,000 . the marginal propensity to consume (MPC) must be 0.80
a. True b. False Indicate whether the statement is true or false