Helped by desktop publishing, the number of vintage baseball card forgeries has flooded the market for vintage baseball cards. Dealers left the market for fear of purchasing a phony. What was the effect on the market for vintage baseball cards assuming phonies could not be detected?
A. Demand shifted to the left, supply did not change, price declined, and quantity traded declined.
B. Supply shifted to the right, demand did not change, price declined, and quantity traded rose.
C. Supply shifted to the right, demand shifted to the left, and price declined.
D. Supply shifted to the right, demand shifted to the left, and price rose.
Answer: C
You might also like to view...
If a 2 percent rise in price leads to a 4 percent decrease in quantity demanded, then demand is
A) elastic and total revenue decreases. B) elastic and total revenue increases. C) inelastic and total revenue decreases. D) elastic, but we cannot tell what happens to total revenue without more information. E) Total revenue decreases but we cannot tell if the demand is elastic or inelastic without more information.
Young Faces Forever is a skin care company based in the United States that wants to enter the Japanese market. Suppose the managers of Young Faces are aware that there are significant social customs in Japan regarding skin products and these customs are unknown to the managers of Young Faces. All else equal, which of the following entry methods is the least likely to be successful for Young Faces?
A) partnership B) joint venture C) independent entry D) merger
In the upward-sloping segment of the aggregate supply curve,
a. when GDP increases, the price level rises. b. when GDP increases, the price level does not change. c. when GDP decreases, the price level rises. d. when GDP increases, the price level falls. e. there is no relationship between changes in GDP and changes in the price level.
If the economy is initially at long-run equilibrium and aggregate demand declines, then in the long run the price level
a. and output are higher than in the original long-run equilibrium. b. and output are lower than in the original long-run equilibrium. c. is lower and output is the same as the original long-run equilibrium. d. is the same and output is lower than in the original long-run equilibrium.