A safety report is released that contends that sport utility vehicles are more prone to roll over during crashes than was previously thought. At the same time, the price of steel (used to produce motor vehicles) increases. The net effect of these two incidents on the market for sport utility vehicles is a(n):
a. decrease in price and an increase in equilibrium quantity
b. decrease in price and a decrease in equilibrium quantity.
c. increase in price and a decrease in equilibrium quantity.
d. indeterminate change in price and a decrease in equilibrium quantity.
d
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Use the graph above to answer the following question. Suppose that Jim is in casino in Las Vegas and wins a $60,000 jackpot
The staff tells him that he can keep it or play one more game that will allow him to increase his jackpot earnings by an additional $20,000 . The game involves simply flipping a coin. If it turns up heads he earns the extra $20,000 . However, if it turns up tails he loses $20,000 of his $60,000 jackpot. Given the utility function above what is he likely to do and why?
Total spending in a nation is its gross national product
a. True b. False Indicate whether the statement is true or false
How does a wheat farmer's contribution to national output get counted in the gross domestic product if the Bureau of Economic Analysis measures only the value of final goods, such as loaves of bread?
What will be an ideal response?
Refer to the information provided in Table 23.1 below to answer the question(s) that follow. Table 23.1
Refer to Table 23.1. Assuming society's MPC is constant at an aggregate of income of $300, aggregate consumption would be
A. $425. B. $350. C. $325. D. $305.