Studies have shown that drinking one glass of red wine per day may help prevent heart disease. Assume this is true, and a fungal disease destroys a large portion of the grape harvest of California vineyards
In the market for red wine, these two developments would
A) increase demand and decrease supply resulting in a decrease in both the equilibrium quantity and the equilibrium price of red wine.
B) increase demand and increase supply, resulting in an increase in the equilibrium quantity and a decrease in the equilibrium price of red wine.
C) increase demand and decrease supply, resulting in an increase in both the equilibrium price and the equilibrium quantity of red wine.
D) increase demand and decrease supply, resulting in an increase in the equilibrium price and an uncertain effect on the equilibrium quantity of red wine.
D
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The quantity theory of money argues that, in the long run, the percentage change in money will create an equal percentage change in
A) velocity. B) real GDP. C) potential GDP. D) the price level.
An example of price discrimination is the price charged for:
A. coffee. B. college admission. C. cashmere sweaters. D. cough syrup.
When aid is in the form of free or remarkably reduced priced goods, it is known as:
A. goods in-kind donations. B. consumable donations. C. freebies. D. direct donations.
Recall the Application about the value of trees in residential neighborhoods to answer the following question(s).According to the Application, a mature tree adds about $7,000 to the value of an owner's house and generates a total external benefit of ________ for neighboring houses.
A. $0 B. $4,500 C. $7,000 D. $13,000