Exhibit 4-3 Supply and demand curves
Initially the market shown in Exhibit 4-3 is in equilibrium at P2, Q2 (E2). Changes in market conditions result in a new equilibrium at P2, Q4 (E4). This change is stated as a(n):
A. increase in supply and an increase in demand.
B. increase in supply and a decrease in demand.
C. decrease in demand and a decrease in supply.
D. increase in demand with supply held constant at S2.
Answer: A
You might also like to view...
Sandy is a big Star Wars fan and buys a $20 ticket a week in advance to the premier of the new movie. After arriving at the theater, she realizes she left the ticket at home and doesn't have time to return home and get it. Sandy can buy another ticket for $20. She decides not to because seeing the movie isn't worth $40 to her. This is an example of:
A. rational behavior because she values the movie less than $40 B. irrational behavior because she really values the movie more than $40 C. irrational behavior because the initial $20 is a sunk cost. D. rational behavior because it is a commitment device to never forget a ticket at home again.
According to Adam Smith, the "invisible hand" refers to which of the following?
a. Government interference in markets to prevent greed. b. The "best interests of society" (public interest) will occur as an outcome of the market process coordinating the self-interested interactions of buyers and sellers (private interest). c. The "best interest of society," (public interest) will occur as an outcome of careful guidance by government authorities in allocating scarce goods and services according to private interest. d. Bribes and graft that interfere with the market process.
How many U.S. labor unions have at least 1.3 million members?
A. 0 B. 2 C. 6 D. 9
When foreigners come to the United States as tourists, they are generating a
A. Supply of U.S. dollars and a supply of a foreign currency. B. Supply of U.S. dollars and a demand for a foreign currency. C. Demand for U.S. dollars and a supply of a foreign currency. D. Demand for U.S. dollars and a demand for a foreign currency.