A decrease in the dollar price of foreign currency would cause
a. the nation's imports to increase and exports to decline.
b. the nation's exports to increase and imports to decline.
c. both imports and exports to decline.
d. both imports and exports to rise.
A
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Refer to Figure 10-9. Consider the budget constraint BC1. If the price of DVDs is $20 and the price of CDs is $10, what is the consumer's income?
A) $120 B) $240 C) $360 D) $480
If Weiskamp T-shirt Co lowers its price from $6 to $5 and finds that students increase their quantity demanded from 400 to 600 T-shirts, then the demand for Weiskamp T- shirts within the $5 to $6 price range is
a. price inelastic b. price elastic c. unit elastic d. cross elastic e. income inelastic
If demand decreases and supply increases,
A. the market clearing price will decrease, and the equilibrium quantity will increase. B. the market clearing price will decrease, and equilibrium quantity will decrease. C. the equilibrium quantity will decrease, but the change in the market clearing price cannot be determined without more information. D. the equilibrium price will decrease, but the change in the equilibrium quantity cannot be determined without more information.
If unemployment and inflation always move in the same direction, then we can infer that business fluctuations are
A. from the demand side. B. from the supply side. C. from both the demand and supply side. D. purely random events.