Recall the Application about the decrease in price of illegal drugs in the United States to answer the following question(s).Recall the Application. If the decrease in price of illegal drugs is due to equal changes in demand and supply, the equilibrium quantity of drugs:
A. will increase.
B. will decrease.
C. will not change.
D. may or may not change.
Answer: C
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Free trade will affect a country's employment in different industries
Indicate whether the statement is true or false
The federal law prohibiting mergers when the merger reduces competition substantially is the
A) Clayton Act. B) Miller-Tydings Act. C) Robinson-Patman Act. D) Sherman Act. E) Taft-Hartley Act.
A rise in the real interest rate
A) shifts the demand for loanable funds curve rightward. B) shifts the demand for loanable funds curve leftward. C) creates a movement upward along the demand for loanable funds curve. D) creates a movement downward along the demand for loanable funds curve.
In the short run, a profit-maximizing firm in a price-taker market will definitely stop production if
a. economic profit is zero. b. price falls below average total cost. c. price is less than average variable cost. d. it cannot completely cover its fixed costs.