A Wall Street Journal headline reads: "Cigar Shortage Draws New Brands into Market." The shortage resulted from a renewed interest in smoking cigars. What best describes facts behind the headline?
A. Demand has shifted to the right and price has risen to equilibrate supply and demand.
B. Supply has shifted to the left. Price has risen somewhat, but not enough to equilibrate supply and demand.
C. Demand has shifted to the right. Price has risen somewhat, increasing quantity supplied, but not enough to equal quantity demanded.
D. Supply has shifted to the right. Price has fallen somewhat, but not enough to equilibrate supply and demand.
Answer: C
You might also like to view...
Briefly define an endogenous variable and an exogenous variable. What variables are endogenous in the classical model? What variables are exogenous
What will be an ideal response?
New classical economists believe that
A. wage and price controls are needed to help control inflation. B. governmental intervention is destabilizing and harmful to the economy. C. the federal government has abdicated its responsibility to promote a non-inflationary full employment economy. D. antitrust laws should be toughened in order to restrain inflation.
According to Keynes, real saving and real consumption spending are functions of
A. current educational attainment. B. current real disposable income. C. economic expectations. D. an individual's future earning potential.
If Bobby thinks that leisure is an inferior good, then his labor supply curve
A) is backward bending. B) is always negatively sloped. C) is always positively sloped. D) does not exist.