Refer to the figure below. Assume demand remains unchanged at D1. If supply shifts from S2 to S1, then the equilibrium price will ________ and the equilibrium quantity will ________. 
A. rise; rise
B. rise; fall
C. fall; fall
D. fall; rise
Answer: B
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In June, buyers of titanium expect that the price of titanium will fall in July. What happens in the titanium market in June, holding everything else constant?
A) The quantity demanded increases. B) The demand curve shifts to the left. C) The quantity demanded decreases. D) The demand curve shifts to the right.
As inflation decreases, households become ________ uncertain leading to ________ spending.
A. more; less B. less; less C. less; more D. more; more
The above figure shows the demand and cost curves facing a monopolist. The monopoly maximizes profit by setting price equal to
A) $100. B) $200. C) $300. D) $400.
One benefit to private sector production of a collective consumption good is _____
a. it overcomes the free riding problem b. private producers can often bundle the good with something else people value c. profits from private companies can be taxed d. provides information valuable in allocating future resources