Assume the supply function of ice cream is written as: Qs = 100 + 20P - 10Pm, where Qs is the quantity supplied, P is price of ice cream, and Pm is the price of milk ($/gallon)
If milk price increases by $2/gallon due to the policy change, how will the Qs change? A) decreases by 20
B) increases by 20
C) decreases by 10
D) increases by 10
A
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If variables x and y move up and down together, they are
A) positively related. B) negative related. C) unrelated. D) trend related.
Which of the following policies is designed specifically to directly promote technological change in an economy?
A) laws to strengthen property rights B) government subsidization of research and development C) tax incentives to promote investment in 401K plans D) a vaccination program to combat infectious diseases
A pure public good is such that
A. both rivalry and exclusivity hold. B. neither rivalry nor exclusivity hold. C. exclusivity holds, but rivalry does not. D. rivalry holds, but exclusivity does not.
If the equilibrium wage is above the actual wage:
A. the demand for labor will increase. B. the demand for labor will decrease. C. the wage rate will fall. D. the wage rate will rise.