Refer to the table above. Assume that the market for notebooks is in equilibrium. Which of the following is likely to happen if a few sellers of notebooks decide to exit the market, everything else remaining unchanged?
A) Both the equilibrium price and quantity of notebooks remain unchanged.
B) Both the equilibrium price and quantity of notebooks decrease.
C) The equilibrium price of notebooks increases, but the equilibrium quantity decreases.
D) The equilibrium price of notebooks decreases, but the equilibrium quantity increases.
C
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Think about the following news items and label each as involving a what, how, or for whom question:
What will be an ideal response?
All of the following are considered intellectual property except
A) software. B) films. C) books. D) shares of stock.
An innovator who creates new products and new ways to get business done is referred to as:
A. an entrepreneur. B. a capitalist. C. a creditor. D. a manager.
Refer to the diagram. Rational expectations theory says that a fully anticipated shift in aggregate demand from AD 1 to AD 2 will:
A. move the economy from a to b to c.
B. move the economy directly from a to c.
C. move the economy from a to a new equilibrium at b.
D. shift the AS curve to the right.