If the government legalizes the purchase and sale of marijuana, the equilibrium quantity would _________ and the price would ________ if the supply of marijuana increased by _______ than the demand for marijuana increased as a result of the legalization
A) rise; rise; more
B) fall; rise; more
C) rise; fall; more
D) rise; rise; less
E) none of the above
D
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When money demand increases, the Fed cannot keep both the money supply from rising and the interest rate from rising
a. True b. False Indicate whether the statement is true or false
Refer to Figure 33-4. If the economy is in long-run equilibrium, then an adverse shift in aggregate supply would move the economy from
1. A to B 2. C to D 3. B to A 4. D to C
In most societies, resources are allocated by
a. a single central planner. b. a small number of central planners. c. those firms that use resources to provide goods and services. d. the combined actions of millions of households and firms.
Which of the following correctly describes the simple tax multiplier?
a. 1/(1-MPC) b. MPC/(1-MPC) c. -MPC/(1-MPC) d. MPS/MPC