In which of the following instances is the effect on equilibrium price dependent on the magnitude of the shifts in supply and demand?
A. Demand rises and supply rises.
B. Supply falls and demand remains constant.
C. Demand rises and supply falls.
D. Supply rises and demand falls.
Answer: A
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With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers:
A. then the policy was ineffective since consumers gained in surplus overall. B. then the policy was effective since consumers lost surplus overall. C. then the policy was ineffective since consumers lost surplus overall. D. then the policy was effective since consumers gained in surplus overall.
By itself, an increase in the price of oil shifts the
What will be an ideal response?
Consider a labor market in equilibrium. If both demand curve and supply curve of labor shift to the right, then the number of workers hired in the market will:
A. increase. B. decrease. C. remain unchanged. D. either increase or decrease or remain unchanged.
The more generous the amount of unemployment benefits, the
A) lower the opportunity cost of job search. B) shorter the time spent searching for a suitable job and the higher the opportunity cost of being unemployed. C) shorter the time spent searching until accepting a suitable job. D) higher the opportunity cost of job search. E) lower the natural unemployment rate.