How do orange growers react to the news of medical research findings that suggest that eating oranges leads to greater health benefits than were previously known?
a. They increase the supply of oranges
b. They increase the quantity of oranges supplied.
c. They decrease the supply of oranges.
d. They decrease the quantity of oranges supplied.
b
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If the government places a $1500 tax on each hybrid car sold
A) consumers will stop buying hybrid cars. B) the supply curve will shift left by up to $1500, depending on the price elasticity of demand. C) the supply curve will shift to the right by $1500. D) None of the above.
Refer to the above figure. A movement from Point A to Point B is caused by
A) an increase in income. B) an expectation of a decrease in the price of the good in that figure. C) a decrease in the price of the good in that figure. D) all of the above.
Taxes are one method of funding the poverty alleviation programs by the government. Which of the following is an important impact of taxes?
a. Taxes increase workers' incentives to work for longer hours. b. Taxes raise the disposable income of the workers. c. Imposition of taxes makes the government popular among the people. d. Taxes reduce the opportunity cost of leisure. e. Taxes reduce the demand for labor.
The quantities of Good M are plotted on the vertical axis while the quantities of Good N are plotted on the horizontal axis. The prices of both M and N fall. The intercepts of the budget line would
A. rise on the vertical axis but stay unchanged along the horizontal axis. B. rise on the horizontal axis but stay unchanged on the vertical axis. C. decline along both axes. D. rise on the vertical axis and also rise on the horizontal axis.