There has recently been an increase in the price of dairy products used in the production of ice cream. Lower temperatures have also induced people to consume less ice cream. In the market for ice cream, the effects these changes will have on equilibrium price and quantity are
A. price will increase, and quantity will decrease.
B. quantity will decrease, and the effect on price is indeterminate.
C. price will decrease, and quantity will increase.
D. price will decrease, and the effect on quantity is indeterminate.
Answer: D
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Diversification reduces the risk that ________ face with ________ cost.
A) firms; little to no B) shareholders; little to no C) firms; zero D) shareholders; high
Exhibit 6-14 Cost curves
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In Exhibit 6-14, constant returns to scale only exist for output levels between:
A. 0 and 1,000. B. 1,000 and 2,000. C. 2,000 and 3,000. D. 3,000 and 4,000.
Which of the following is not evidence of the lower standard of living among less-developed countries?
A. high per capita real GDP B. high percentage of households headed by females C. high infant mortality rate D. low life expectancy
One valuable lesson investors should learn from the stock market behavior during the late 1990s and early 2000s is that the Fed:
A. can control the stock market. B. cannot prevent a stock market decline. C. can reduce the idiosyncratic risk of investing but not the systematic risk. D. can eliminate the risk from investing.