If government regulations increase the cost of producing gasoline while at the same time government regulations reduce the cost of driving a relatively inefficient sport utility vehicle (SUV),
A) the supply of gasoline is expected to increase.
B) the demand for gasoline is expected to decrease.
C) the price of gasoline is expected to increase, whereas the total consumption of gasoline can increase, decrease, or stay the same.
D) the supply of gasoline is expected to decrease.
C
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The Fed conducts an open market operation and buys $50,000 of government securities from Commerce Bank. The desired reserve ratio is 25 percent. What is the change in Commerce Bank's total reserves and its excess reserves?
What will be an ideal response?
In the above figure, if D2 is the original demand curve and the price of a substitute in consumption rises, which price and quantity might result?
A) point a, with price P2 and quantity Q2 B) point b, with price P1 and quantity Q1 C) point c, with price P3 and quantity Q3 D) point d, with price P1 and quantity Q3
Refer to the table below. If the cost per unit of advertising is constant at $675, what is the level of advertising per week that maximizes the industry joint profit?
Suppose the dairy industry is made of up only by the three firms above; Cow Haven, Free Cows, and Happy Cows.
A) 5 B) 4 C) 3 D) 2
As a result of habit formation, people spend more today if
A. they spent more in the past. B. they have no loan or debt in the past. C. they spent less in the past. D. they never had any income in the past.