The market for chewing gum is competitive with a current price of 50 cents per pack and a quantity of 100,000 packs per day. Which of the following events would lead to a new equilibrium price of 75 cents and a new equilibrium quantity of 125,000?
a. an increase in the price of other kinds of candy
b. an increase in the price of the ingredients used to make chewing gum
c. an agreement by workers in the chewing gum industry to work for lower wages
d. a decrease in the number of young people in the population
e. a decrease in income
A
You might also like to view...
Scatterbrain Samantha often forgets to lock her house. This has caused the probability of a burglary to be 30%. If her house gets broken into, she faces a property loss of $10,000, otherwise she gets to keep her $100,000 . If Samantha is offered an insurance policy for her house to protect her from loss at $3,000, would she buy the insurance?
a. Yes because she gets to now enjoy her wealth risk-free b. No, because she can take the risk and be better off c. Yes, because she is a risk lover d. None of the above
Mark and John are 10-year-old twins who do not get along. They have opened separate lemonade stands and are competing with each other, selling lemonade on their block. Their mother observes that Mark is very good at making lemonade and John is an
excellent young salesman. She suggests they both could make more money if they worked together. John counters that two stands will always make more money than one. Who is right? Why?
Which of the following is not included in a nation's balance of payments?
a. Imports and exports of services. b. International interest and dividend earnings. c. International real estate transactions. d. Changes in a nation's money supply due to a new required reserve ratio. e. All of the above are included in the balance of payments.
Ivan’s country was recently involved in a major civil war, and many of the nation’s natural resources were damaged or destroyed. How will this impact its production possibilities curve?
a. It will shift inward. b. It will be unaltered. c. It will shift outward. d. It will rise, then fall.