Other things being equal, suppose that the demand for wheat in constant quality units increases. The increase in demand will cause
A) a surplus of wheat.
B) a higher equilibrium price and higher equilibrium quantity of wheat.
C) fall in the market clearing price of corn, a substitute for wheat.
D) a higher equilibrium quantity, but a lower equilibrium price of wheat.
B
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From the Monetarist perspective, the aggregate supply curve is
A) vertical. B) horizontal. C) sensitive to changes in the money supply. D) sensitive to changes in consumption.
The fairness of distributing goods and services based on marketable skills is ______.
a. universally accepted b. a divisive issue c. universally rejected d. seldom debated
Which of the following is the calculation that tells us the proportion of trade in each product involving both imports and exports?
a. the index of overlapping production b. the index of effective trade c. the index of intra-industry trade d. the index of displacement
The current yield of a bond:
A. is another term for the yield to maturity. B. is the difference between its future value and its present value. C. equals zero for a zero-coupon bond since these bonds have no coupon payments. D. is another term for the coupon rate.