Before summer 2008, if you wanted a cell phone in Bhutan, you only had one choice: B-Mobile, owned and operated by the government. Then, this past spring, a privately owned competitor, Tashi, was let in
What do you predict will happen to equilibrium price and quantity in the cell phone market? A) Price will decrease and quantity will increase.
B) Price will increase and quantity will decrease.
C) Both price and quantity will increase.
D) Both price and quantity will decrease.
A
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The cross elasticity between two goods has been measured at ?1.2. How are the goods related? Explain. Give an example of goods for which this might be a reasonable measure of cross elasticity.
What will be an ideal response?
Can a country have comparative advantage in all products?
What will be an ideal response?
The economy is in long-run equilibrium only when the short run aggregate supply curve intersects the aggregate demand curve along the long run aggregate supply curve
a. True b. False Indicate whether the statement is true or false
The federal funds rate is the interest rate for
A. reserves that banks borrow from the Fed. B. the preferred customers of the banks. C. reserves borrowed by one bank from another bank. D. banks belonging to the Federal Reserve System.