Assume that both the demand curve and the supply curve for MP3 players shift to the right but the supply curve shifts more than the demand curve. As a result
A) both the equilibrium price and quantity of MP3 players will decrease.
B) the equilibrium price of MP3 players will decrease; the equilibrium quantity will increase.
C) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease.
D) the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.
Answer: B
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Recall the Application about the manufacture of fake killer whales used to scare sea lions off the Washington coast to answer the following question(s).Recall the Application. If a fake killer whale to be used to scare sea lions away from steelhead and other threatened and commercially valuable species cost $11,000 for the mold and $5,000 for materials for each fake killer whale made, then the average or per unit cost of producing five fake killer whales would be:
A. $5,000. B. $7,200. C. $11,000. D. $16,000.
When a negative externality exists, the private cost of production ________ the social cost of production
A) is greater than B) is less than C) eliminates D) is equal to
Under a flexible exchange rate system, an increase in the value of a domestic currency in terms of other currencies is referred to as
A) an appreciation. B) a depreciation. C) a devaluation. D) a revaluation.
The money supply curve is vertical because
a. real income does not influence the quantity of money supplied b. the price level does not influence the level of spending c. only the interest rate influences the quantity of money supplied d. the Federal Reserve sets the money supply e. nominal income does not influence the quantity of money supplied