As lumber becomes more expensive
A. the quantity of lumber demanded will increase.
B. the equilibrium quantity of new houses will decrease.
C. the supply of new houses will increase.
D. None of the choices are correct.
B. the equilibrium quantity of new houses will decrease.
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If the demand for steak shifts to the right, a likely reason is that
A. the price of cattle feed has fallen. B. consumer income has risen. C. the price of steak has fallen. D. cattle production has fallen.
The market supply function is P = 10 + Q and the market demand function is P = 70 - 2Q. What is the change in consumer surplus associated with a minimum floor price of $40?
A) -$25 B) -$150 C) -$175 D) -$200
When insurance companies use observable information about people to reveal private information, it is called ______.
a. adverse selection b. asymmetric information c. screening d. standardization
The United States is an example of
A) a customs union. B) a free trade area. C) an economic union. D) a common market.