The above figure shows the market for game day t-shirts. If the price of t-shirts is $8, then
A) the market is in equilibrium.
B) there is a shortage and the price of t-shirts will rise.
C) there is a shortage and the price of t-shirts will fall.
D) there is a surplus and the price of t-shirts will fall.
E) there is a surplus and the price of t-shirts will rise.
B
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Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?
A) D increases, S no change, P and Q increase B) D no change, S increases, P decreases, Q decreases C) S increases, D no change, P decreases, Q increases D) D and S increase, P and Q decrease
In the period 1960–95,
(a) the relations between capital and labor (owners and workers) continued to be as hostile and violent as they were in the 1930s and earlier. (b) the relations between capital and labor (owners and workers) continued to be cooperative and peaceful, as they had been throughout U.S. history. (c) an accord was struck which involved more cooperative relations between capital and labor and encouraged high rates of productivity in industry. (d) the federal government intervened with a strong hand to ensure that labor and capital worked together cooperatively.
Joe's income this year is 55,000. The consumer price CPI is 110. What Joe's income in term of base year dollars rounded to the nearest dollar?
A. 60,500 B. 53,000 C. 49,800 D. 50,000 E. none
Given that frozen yogurt and ice cream are substitutes, a shift in preferences in favor of yogurt would be predicted to do all of the following EXCEPT
A) raise the equilibrium price of frozen yogurt. B) increase the quantity supplied of frozen yogurt. C) increase the supply of ice cream. D) increase the demand for frozen yogurt.