An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price
A. To rise and equilibrium quantity to fall.
B. And equilibrium quantity to fall.
C. To fall and equilibrium quantity to rise.
D. And equilibrium quantity to rise.
Answer: C
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What will be an ideal response?
What would happen if the German economy became viewed as a less desirable place for foreign investors to put their money because of fears about the growth of the German public debt?
a. Equilibrium would not change. b. A lower quantity of financial investment would result. c. A lower interest rate would result. d. Interest rates would not change.
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The demand for a good is elastic. Which of the following would be the most likely explanation for this?
A. The time interval considered is long. B. The good costs a small portion of one's total income. C. The good is broadly defined. D. The good is a necessity.