Suppose the market for "soda X" is in equilibrium. If the FDA announced today that this soda has been proven to cause a fatal disease, what would be most likely to happen to the equilibrium price and equilibrium quantity of soda X?
A. Price increases and quantity increases
B. Price decreases and quantity increases
C. Price increases and quantity increases
D. Price decreases and quantity decreases
Answer: D
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Briefly contrast how firms in a perfectly competitive market will respond to long-run profits and losses. Include an explanation of how each response affects the price level
In what industrial sector are children most likely to be working?
What will be an ideal response?
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.
Short-run costs that do not depend on the level of output are
A. total variable costs only. B. total fixed costs only. C. both total variable costs and total costs. D. total costs only.