When a price support is set below the equilibrium price, producers ________ the quantity supplied, and consumers ________ the quantity demanded
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
E) do not change; do not change
E
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A budget-constrained public enterprise may behave quite differently when entry is barred than it would when new entry is allowed
Indicate whether the statement is true or false
The phase in the business cycle in which real GDP declines is called a:
a. trendline. b. peak. c. recession. d. recovery. e. trough.
The price of soccer balls increases from $35 to $40, and as a result, the quantity demanded decreases from 250 to 200 . Over this price range,
a. demand is elastic. b. demand is inelastic. c. demand is of unitary elasticity. d. there is insufficient information to determine the price elasticity of demand.
Double taxation of saving may
A. reduce the saving rate. B. increase the budget deficit. C. increase the rate of economic growth. D. increase the rate of investment.