Saddle shoes are not popular right now, so very few are being produced. If saddle shoes become popular, then how will this affect the market for saddle shoes?
a. The supply curve for saddle shoes will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity.
b. The supply curve for saddle shoes will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity.
c. The demand curve for saddle shoes will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity.
d. The demand curve for saddle shoes will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity.
c
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The principle of minimum differentiation suggests that competitors
A) try to distinguish themselves by offering highly different products. B) try to gain the largest market share by differentiating a popular product. C) tend to make identical goods in order to appeal to the largest number of consumers. D) try to decrease costs by minimizing the differences in the types of resources used.
An autonomous rise in ________ shifts the LM curve to the ________, everything else held constant
A) net exports; right B) net exports; left C) money demand; right D) money demand; left
What is the meaning of the phrase ceteris paribus to an economist?
(A) The way that economists consider the changes in demand for a good. (B) A projection about the change in availability of a good. (C) An assumption that nothing but the price of an item will change. (D) A conjecture about the changes in consumer behavior.
People who are only working part-time, but want to be working full-time, are classified officially as:
A. unemployed and in the labor force. B. unemployed and out of the labor force. C. employed and in the labor force. D. employed and out of the labor force.