Which of the following would result from an increase in the demand for a good?
A. Both equilibrium price and quantity would rise.
B. Both equilibrium price and quantity would fall.
C. Equilibrium price would rise, and equilibrium quantity would fall.
D. Equilibrium quantity would rise, and equilibrium price would fall.
A. Both equilibrium price and quantity would rise.
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A) buys; contract B) buys; expand C) sells; expand D) None of the above.
Suppose there are no borrowing constraints but the individual wishes to leave a bequest of $120,000 (after adjusting for inflation) to heirs. Then annual consumption should be
Consider an individual who enters adulthood and the labor force at age 18, expects to work 5 years at a real income of $10,000 per year, anticipates earning a real income of $40,000 per year from age 23 to 63, expects to retire with a $10,000 annual pension, and live until age 78. Suppose the interest rate is zero, and the individual seeks perfectly smooth consumption across his adult lifetime. a) $12,000 b) $16,000 c) $20,000 d) $24,000 e) $28,000
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A) one-way B) two-way C) multilateral D) free
An increase in demand for French fries will cause equilibrium wage rates:
A. and quantities of potato workers hired to rise. B. and quantities of potato workers hired to fall. C. to rise and quantities of potato workers hired to fall. D. to fall and quantities of potato workers hired to rise.