Refer to the diagram, in which S 1 and D 1 represent the original supply and demand curves and S 2 and D 2 the new curves. In this market:
A. supply has decreased and equilibrium price has increased.
B. demand has increased and equilibrium price has decreased.
C. demand has decreased and equilibrium price has decreased.
D. demand has increased and equilibrium price has increased.
B. demand has increased and equilibrium price has decreased.
You might also like to view...
Increasing the income tax rate ________ the ________
A) does not change; supply of labor B) decreases; supply of labor C) increases; supply of labor D) decreases; demand for labor E) increases; demand for labor
Assuming the economy in the graph shown is currently at equilibrium A, if the government wanted to enact a policy it would likely enact:
A. expansionary fiscal policy in an effort to move aggregate demand to the right.
B. contractionary fiscal policy in an effort to move aggregate demand to the left.
C. expansionary fiscal policy in an effort to move aggregate demand to the left.
D. contractionary fiscal policy in an effort to move aggregate demand to the right.
You want to buy a TV that regularly costs $250. You can either buy the TV from a nearby store or from a store that's downtown. Relative to going to the nearby store, driving downtown involves additional time and gas. The downtown store, however, has a 10 percent off sale this week. Last week you drove downtown to save $20 on some concert tickets, a 15 percent savings. Should you drive downtown to buy the TV?
A. No, because you will save more than $20. B. Yes, because you will save more than $20. C. No, because you will only save 10 percent, which is less than 15 percent. D. Yes, because you will save 10 percent, which is better than nothing.
The practice of making choices using generalizations based on observable characteristics like race, gender, or age is called:
A. discrimination. B. conditional cash transfers. C. means-testing. D. None of these is true.