Which of the following statements is correct?
A) A change in demand or supply can only be caused by a change in price.
B) A simultaneous decrease in demand and increase in supply will result in an increase in equilibrium price and uncertain effect on quantity.
C) If price is currently above equilibrium, market adjustments will result in a decrease in price and quantity supplied.
D) An increase in supply invariably leads to a shortage in the affected market.
C
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To ensure that we get the same result for price elasticity no matter which direction we move on the demand curve, we must take the average of the
a. initial price and the initial quantity demanded and the average of the new price and the new quantity demanded b. new price and the initial quantity demanded and the average of the new quantity demanded and the initial price c. initial price and the new price and the average of the initial quantity demanded and the new quantity demanded d. initial price and the new price only e. new quantity demanded and the initial quantity demanded only
Because of unseasonably cold weather, orange crops were destroyed in Florida. This statement indicates that
A. the demand for apple juice will decrease. B. the amount of orange juice will decrease. C. demand for oranges will necessarily rise. D. equilibrium quantity of oranges will rise.
In an experiment that employed the dictator game, economists at Cornell University gave student "allocators" the option of dividing $20 in only two ways (a) $18 for themselves and $2 to another student, or (b) $10 for themselves and $10 to anoth
student. What was one result from this experiment? A) Most allocators chose to give themselves $18 and $2 to the other students. B) A majority of the female allocators chose option (a); a majority of the male allocators chose option (b). C) Most of the allocators apparently valued acting fairly. D) Most of the students who were not allocators did not like having someone else make decisions for them.
Which of the following is NOT associated with the new growth theory?
A) natural resources B) research C) technology D) innovation