Economic theory predicted that the price of a depletable resource would rise by 10 percent. In reality, the price fell by 5 percent. Which of the following events could explain this discrepancy?
A. Known reserves of the resource were depleted.
B. The interest rate rose by 15 percent.
C. Antitrust enforcement broke up a cartel among major suppliers of the resource.
D. The government imposed an effective price floor.
Answer: C
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A. S1to S2. B. S2to S1. C. S2to S3. D. S1to S3.
Moving ________ the short-run Phillips curve is equivalent to moving ________
A) downward along; downward along the aggregate demand curve B) downward along; downward along the potential GDP line C) downward along; upward along the aggregate demand curve D) downward along; upward along the potential GDP line E) upward along; upward along the aggregate supply curve
If one person has all the income and everyone else has none, the Gini ratio is zero
Indicate whether the statement is true or false
Which of the following is true if the price of coffee increases?
A. The demand for tea, a substitute good, will decrease. B. The demand for coffee will increase. C. The demand for tea, a substitute good, will increase. D. Both the demand for coffee and tea will increase.