Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?
A) D increases, S no change, P and Q increase.
B) S increases, D no change, P decreases, Q increases.
C) D and S increase, P and Q decrease.
D) D no change, S increases, P decreases, Q decreases.
Answer: B
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Refer to Figure 18.4. With an import ban, how many gloves are produced domestically in Duckland?
A) 100 B) 80 C) 60 D) 0
A rational consumer will cease purchasing a product at that quantity where marginal utility begins to diminish.
a. true b. false
Which of the following countries is NOT a member of the Eurozone?
A) Germany B) Ireland C) Spain D) Poland
Why is collusion more likely in cases of oligopoly than in perfect competition?
a. In oligopoly, all firms sell an identical product; but in perfect competition, the product varies between producers. b. There are too many firms in perfect competition to allow for collusion. c. Oligopoly moves towards an equilibrium outcome; perfect competition does not. d. Perfect competition moves toward an equilibrium outcome; oligopoly does not