Recall the Application about the decrease in price of illegal drugs in the United States to answer the following question(s).Recall the Application. If the decrease in price of illegal drugs is primarily due to a change in supply, the equilibrium quantity of drugs:
A. will increase.
B. will decrease.
C. will not change.
D. may or may not change.
Answer: A
You might also like to view...
If a budget deficit is the result of expenditures for programs such as farm subsidies and Social Security, the burden on future generations is slight
a. True b. False Indicate whether the statement is true or false
In a long-run equilibrium where firms have identical costs, it is possible that some firms in a competitive market are making a positive economic profit
a. True b. False Indicate whether the statement is true or false
All else constant, an increase in the demand for bonds
A) increases the equilibrium quantity and the equilibrium price of bonds. B) increases the equilibrium quantity and decreases the equilibrium price of bonds. C) decreases the equilibrium quantity and increases the equilibrium price of bonds. D) decreases the equilibrium quantity and the equilibrium price of bonds.
Answer the question on the basis of the following four tax schedules for the given base of taxable income. Which of the above tax schedules is a regressive tax schedule throughout?
A. A
B. B
C. C
D. None of the schedules