Suppose a market is in equilibrium and then a price floor is established below the equilibrium price. Which of the following will happen?
a. quantity demanded will increase
b. a surplus will develop
c. a shortage will develop
d. the quantity sold will rise
e. the market will remain in equilibrium
E
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An increase in the price level leads to
A) an upward movement along the aggregate supply curve. B) a downward movement along the aggregate supply curve. C) a leftward shift of the aggregate supply curve. D) a rightward shift of the aggregate supply curve. E) neither a movement along the aggregate supply curve nor a shift of the aggregate supply curve.
Consider the market for air travel. A simultaneous increase in the price of fuel and another terrorist attack on United States soil would cause the equilibrium quantity of air travel to go down, but have an uncertain effect on equilibrium price
Indicate whether the statement is true or false
Return to the case of Jan, the hyperbolic discounter from the previous question. What values of B and C will lead her to be consistent with a plan not to undertake the action?
a. C < B < 2C. b. B < C. c. B > 2C. d. B < C < 2B.
The anticipated effect of contractionary monetary policy is
a. increase in aggregate demand. b. fall in interest rates. c. increased capital outflow. d. appreciation of the currency.