Whether a subsidy for a certain good is given to a demander or supplier is irrelevant because
a. in either case, the price that the demander has to pay will decrease; while the price the supplier receives will increase
b. in either case, the price that the demander has to pay will increase; while the price the supplier receives will decrease
c. either situation will create excess demand
d. either situation will create excess supply
e. none of these are correct
A
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Assume that the market for consumer gasoline is perfectly competitive. When one additional seller (gas station) enters the market,
A) then at least one other seller must exit the market. B) the price of gasoline increases. C) the price of gasoline is left unaffected. D) the price of gasoline decreases. E) None of the above is correct.
Money is a convenience that makes the economic pie bigger
Indicate whether the statement is true or false
Based on Figure 3.1, it can be inferred that:
A) Alvin does not consider good X as "good." B) Alvin will never purchase any of good Y. C) Alvin regards good X and good Y as perfect substitutes. D) Alvin regards good X and good Y as perfect complements. E) none of the above
A recent epidemic of mad cow disease caused the government to mandate that thousands of cows be completely destroyed. This will likely cause:
A. the demand for leather shoes to increase. B. the supply of leather shoes to decrease. C. the demand and the supply of leather shoes to increase. D. It will not affect the market for leather shoes.