A shift from D1 to D2 causes equilibrium price to __________ and quantity to __________.
A. rise; rise
B. fall; fall
C. rise; fall
D. fall; rise
A. rise; rise
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The U.S. demand for foreign cars has increased dramatically since the early 1900s because
(a) Americans perceive foreign cars as lower quality cars than U.S.-produced cars. (b) foreign producers are manufacturing relatively fuel-efficient cars. (c) U.S. consumer demand for large, fuel inefficient cars has increased. (d) of all of the above reasons.
Which of the following is true regarding tacit collusion?
A) It is a formal agreement. B) It is more likely to occur when the price elasticity of demand is small. C) It is more likely to occur when barriers to entry are low. D) It is illegal.
A provision that permits raising tariffs if domestic producers are suffering under an existing tariff is known as
a. a trading bloc. b. exchange control. c. anti dumping. d. an escape clause.
Archie has a savings account at a bank. If he earns 6 percent interest on his account and if there is deflation, then his purchasing power rises by more than 6 percent over the course of a year
a. True b. False Indicate whether the statement is true or false