Suppose a new law requires all piercing studios to pass tougher licensing tests and to begin using more costly sterilization methods. Other things constant, this law would cause:
a. an increase in the supply of piercings and a lower price for piercings.
b. an increase in the supply of piercings and a higher price for piercings.
c. a decrease in the supply of piercings and a higher price for piercings.
d. a decrease in the supply of piercings and a lower price for piercings.
c
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If the current quantity demanded of John Deere tractors is 50,000 tractors, and the quantity supplied is 75,000 tractors, then
A) there is a shortage of 25,000 tractors. B) there is a surplus of 25,000 tractors. C) there is a shortage of 125,000 tractors. D) there is a surplus of 125,00 tractors.
Refer to Figure 2-9. What is the opportunity cost of producing 1 popsicle in Greenland?
A) 2/3 of a snow cone B) 5/6 of a snow cone C) 1 1/5 snow cones D) 240 snow cones
A perfectly elastic demand:
A. means consumers are extremely sensitive to a change in price. B. means quantity demanded is unchanged if the price changes by any amount. C. is demonstrated by a vertical demand curve. D. has a price elasticity of 1.
The central reason why there are gains from international trade is because a. trading allows otherwise unemployed people to have jobs
b. the rate of interest is not the same in all countries. c. resources are not equally distributed to all nations. d. those nations with absolute advantages in producing many goods can produce all of those goods at lower opportunity costs than other countries.