If both producers and consumers believe that a product's price will rise in the future, then at the present, demand ________ and supply ________
A) decreases; decreases
B) decreases; increases
C) does not change; does not change
D) increases; decreases
E) increases; increases
D) increases; decreases
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Over time, carpenters become aware of more attractive employment opportunities outside of carpentry. Does this development affect the demand for carpenters, or does it affect the supply of carpenters?
If a depletable resource is selling in a perfectly competitive market, its expected price will continue to fall over time. This makes it unprofitable for firms to seek out the resource and bring it to market.
Answer the following statement true (T) or false (F)
In standard game theory, cheap talk:
A. changes the payoffs. B. benefits only trustworthy people. C. doesn't affect the outcome of the game. D. will fool all the players into cooperating.
You went to a craft show and paid an exorbitant price for an embroidered shawl that the seller said was hand-embroidered and had been imported from India
Several months later, you find a similar shawl in another showroom at a much lower price and found out that the one you bought was not an imported one. This is an example of ________ in the market for embroidered shawls. A) asymmetric information B) positive externalities C) negative externalities D) the free-rider problem