Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are given by the following set of equations:
QS = -60 + 3P
QD = 390 - 2P
In the absence of international trade in skateboards, what will be the equilibrium price of skateboards in the United States?
A. $66
B. $90
C. $45
D. $150
Answer: B. $90
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A) horizontal. B) upward-sloping. C) vertical. D) downward-sloping.
Monopoly producers face
A) many competitors producing the same product. B) only a few competitors producing the same product. C) at least one competitive producer of the same product. D) no competitive producers of the same product.
Vertical and horizontal equity are widely accepted and applying them to evaluate a tax system is always straightforward
a. True b. False Indicate whether the statement is true or false
Suppose that households became mistrustful of the banking system and decide to decrease their checking account balances and increase their holdings of currency. Using the money demand and money supply model and assuming everything else is held constant,
the equilibrium interest rate should A) increase. B) decrease. C) not change. D) increase, then decrease.