Refer to the accompanying figure. The equilibrium price in this market is ________ and the equilibrium quantity is ________.
A. $25; 25
B. $30; 25
C. $25; 30
D. $30; 30
Answer: B
You might also like to view...
Which of the following will not cause consumption, and as a result, aggregate demand, to increase?
a. an optimistic business forecast of future income growth b. a tax cut c. an increase in consumer confidence d. a tax increase
Current discussions about the financing of congressional campaigns and presidential elections focus on the problem of
a. internalities b. externalities c. public goods d. public choice e. representation
Refer to Figure 6.4. What area represents the decrease in consumer surplus when the price of computers increases from $1,000 to $1,500?
A. b
B. b + e
C. b + c
D. a + b
When inflation is not a surprise:
A) the Phillips curve is downward sloping. B) activist monetary policy has a real effect on the economy. C) the economy is not at full-employment output. D) it does not affect the unemployment rate. E) the economy is expanding.