Suppose that the percentage change in demand is 10%, the price elasticity of demand is 2, and the price elasticity of supply is 2. The equilibrium price will:
A. decrease by 2.5 percent.
B. increase by 40 percent.
C. increase by 2.5 percent.
D. decrease by 40 percent.
Answer: C
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Joshua's indifference curves for two products are shown below: 
Which of the following indifference curves is the least preferred?
A. U1 B. U2 C. U3 D. Unclear given the current information
The short-run market demand schedule in perfect competition is positively sloped
a. True b. False Indicate whether the statement is true or false
According to the foreign trade effect, when the U.S. price level decreases, U.S. consumers are likely to buy:
A. More American-made products. B. Different American-made products. C. More foreign-made products. D. Less of all products, both American made and foreign made.
Suppose that a politician tells you about a plan to create two expensive but necessary programs to build more production facilities for solar power and wind power. At the same time, the politician is unwilling to cut any other programs. Assuming the resources are already being efficiently used in other programs, where would the point the politician is trying to reach be on the production possibilities frontier?
What will be an ideal response?