If the cost of producing a good rises for sellers, then how will this affect the market equilibrium for that good?
a. Price will rise and quantity will fall.
b. Price will fall and quantity will rise.
c. Price and quantity will both rise
d. Price and quantity will both fall.
a
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The substitution effect measures
A) the responses of quantities to changes in the relative prices of goods. B) the responses of relative prices to changes in the demand for goods. C) how two goods can be used for the same purpose. D) the responses of quantities to changes in the relative qualities of goods.
A downward-sloping demand curve for Korean won in terms of Canadian dollars indicates that the higher the dollar price of Korean won, the more won will be demanded
a. True b. False Indicate whether the statement is true or false
The Jones family is going to Disney World and has set a budget of $2000 for visiting the theme park and hotel accommodations. Their original plan was to spend three days at the park and two nights in the hotel. Mrs. Jones unexpectedly listens to a timeshare sales pitch and she is paid $400 for enduring the ordeal. The family decides to spend an extra day at the park and two extra nights in the
hotel. For the Jones family, we can be certain that a. hotels nights are an inferior good b. their budget line has shifted to the left c. theme parks days are an inferior good d. hotel nights are a normal good e. their budget line has changed its slope
Figure 4-9
Refer to . The market for gasoline was initially in equilibrium at point b. If a $.40 excise tax was imposed,
a.
the supply of gasoline would shift to S2.
b.
the price of gasoline to consumers would increase from $1.20 per gallon to $1.40 per gallon.
c.
the net price received by producers of gasoline would decline from $1.20 per gallon to $1.00 per gallon.
d.
all of the above would occur.