Suppose that demand for tablets increases, and simultaneously, the supply of tablets increases. Which of the following would you conclude definitely will occur in the market for tablets?
A) The market clearing price will rise.
B) The market clearing price will fall.
C) The equilibrium quantity will rise.
D) The equilibrium quantity will fall.
C
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The difference between the economic and political functions of government is that
A) the economic function is concerned with the Federal Taxation system while the political function is not. B) the economic function is concerned with correcting for market failures while the political function is not. C) the economic function is concerned with the reallocation of income while the political function is not. D) the economic function encourages merit goods while the political function discourages demerit goods.
Which of the following is true for a profit-maximizing competitive firm in the long run but not a monopolist?
A. MC = MR. B. MC = P. C. AR = P. D. Q > 0.
Suppose the supply of dollars decreased from S2 to S1 in Figure 36.3. As a result of this change,
A. The Swiss franc will gain value worldwide. B. A trade deficit will be created in Switzerland. C. U.S. computer exports to Switzerland will be lower-priced in dollars. D. Swiss chocolate imports to the United States will be lower-priced in dollars.
Based on the table, the increase in government purchases changes aggregate demand ______.
a. less than the combined changes in consumption purchases
b. more than the combined changes in consumption purchases
c. the same amount as the combined changes in consumption purchases
d. the same amount as the first individual round of consumption purchases