If the demand for housing increases and the supply of housing decreases:
A) price will go up and quantity will go down.
B) price and quantity will both go up.
C) price will increase, but the quantity change is indeterminate.
D) the quantity will be higher, but the change in price is indeterminate.
Ans: C) price will increase, but the quantity change is indeterminate.
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What will be an ideal response?
When tradable allowances are used to correct negative externalities in a market, the outcome:
A. limits the quantity bought and sold to the efficient level. B. maximizes surplus. C. is efficient. D. All of these statements are true.
With each additional unit consumed, ______ decreases.
a. marginal utility b. consumer equilibrium c. product substitution d. total utility
The earned income tax credit (EITC) is an earnings subsidy for low-income households.
Answer the following statement true (T) or false (F)