If market supply decreases and, simultaneously, market demand increases, the new equilibrium will show:
a. market price will decrease, and market quantity exchanged will increase.
b. market price will increase, and market quantity exchanged will decrease.
c. market price will increase, and the quantity exchanged could increase, decrease, or remain the same.
d. market price could increase, decrease, or remain the same, and quantity exchanged will increase.
e. market price will increase, decrease, or remain the same, and quantity exchanged will decrease.
c
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Answer the following statement(s) true (T) or false (F)
1. According to the textbook application, the United States pays a higher tax rate on gasoline than any nation in the European Union (EU). 2. If firm 1 and firm 2 each face an marginal abatement cost of MAC1 = 5A1 and MAC2 = 3A2, respectively, and if the combined abatement level must be 16 units, then firm 1 must abate 6 units and firm 2 must abate 10 units in order to achieve the cost-effective solution. 3. Suppose that for some abatement equipment market, the MSB = 525 – 1.2Q and MPB = 325 – 0.8Q, then the Pigouvian subsidy for that market must equal 200 – 0.4Q at QE to achieve an efficient outcome. 4. Suppose that for some abatement equipment market, the MSB = 502 – 1.2Q, and MPB = 302 – 0.8Q, then the Pigouvian subsidy must equal 804 – 2Q at the efficient output level to achieve the efficient output level. 5. Compared to an abatement equipment subsidy, a per-unit subsidy on abatement might be less disruptive to the market because it is defined without any influence as to how abatement is achieved.
By providing workers with more machines, equipment and buildings to use in the production of goods, production would decrease
Indicate whether the statement is true or false
In the industrial period of U.S. history, the manufacturing goods consumed by U.S. households were subject to
(a) high taxes. (b) Engel's Law. (c) income effects. (d) none of the above.
The Sherman Act prohibits:
a. contracts in restraint of commerce b. monopolization of an industry c. price discrimination d. a and b e. a, b, and c