A shift from S1 to S2 causes equilibrium price to __________ and quantity to __________.
A. rise; rise
B. fall; fall
C. rise; fall
D. fall; rise
C. rise; fall
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According to your text, when a surplus exists,
A) buyers compete with buyers. B) buyers compete with sellers. C) sellers compete with sellers. D) nobody has to compete because scarcity has been eliminated.
Briefly explain how specialization and trade can benefit nations
What will be an ideal response?
When all resources used in production are not perfectly substitutable,
a. specialization does not lead to greater production b. the economy or firm is producing at a point outside of its production possibilities frontier c. there will be constant opportunity costs d. the production possibilities frontier will be concave (bowed outward) e. the economy or firm will only produce one good in equilibrium
Refer to the accompanying figure. A decrease in demand is represented by a shift from:
A. curve D to curve C. B. curve B to curve A. C. curve A to curve B. D. curve C to curve D.