If the price of hot dogs were to decrease, which of the following changes would we expect to occur in the hot dog bun market?
a. The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would increase.
b. The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would decrease.
c. The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would increase.
d. The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would decrease.
e. The equilibrium price of hot dog buns would stay the same and the quantity of hot dog buns sold would increase.
c
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What will be an ideal response?
An economic model will produce poor predictions if it includes unrealistic assumptions
a. True b. False
Because it is
a. excludable but not rival in consumption, a sweatshirt is a club good. b. rival in consumption but not excludable, a sweatshirt is a club good. c. both excludable and rival in consumption, a sweatshirt is a private good. d. neither excludable nor rival in consumption, a sweatshirt is a public good.
If once vaccinated, a person cannot catch a cold or give a cold to someone else, the marginal social benefit resulting from consumption of the vaccine:
A. equals the marginal social cost of producing the vaccine in a competitive equilibrium. B. equals the marginal benefit received by consumers of the vaccine in a competitive equilibrium. C. exceeds the marginal benefit received by consumers of the vaccine. D. is less than the marginal benefit received by consumers of the vaccine.