When the demand for blue jeans increases, what happens next?
What will be an ideal response?
If the demand for blue jeans increases, then at all prices buyers are more willing and more able to buy blue jeans. The demand curve for blue jeans shifts rightward. With the curve shifts, at the initial price a shortage of jeans will emerge. The law of supply and demand will force the price higher. Hence an increase in demand for blue jeans leads to a rise in the price of a pair of blue jeans and an increase in the quantity of blue jeans.
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Use the figure below to answer the following question.
The area that identifies the maximum sum of consumer surplus and producer surplus is
A. a + b + e. B. a + b + c + d. C. a + b + c + d + e + f. D. c + d + f.
If a seller incurs an obligation to generate an ancillary obligation of a certain value to offset the initial buyer's capital expenditure, then there is a(n) ____ in place
A) spot contract B) buyback contract C) offset contract D) enforceable contract
Data on world reserves of minerals, gathered by Blackman and Baumol, show that between 1950 and 2000 . production of most minerals
a. greatly exceeded the reserves available in 1950. b. declined as depletion occurred. c. greatly reduced the reserves available in 2000. d. was limited to a fraction of the reserves available in 1950.
If the MPC increase, the equilibrium levels of income and consumption will change in which of the following ways?
A) No change/No change B) No change/Increase C) Increase/No change D) Increase/Increase E) Decrease/Decrease