A decrease in demand will result in a(n)
a. increase in equilibrium price and quantity
b. decrease in equilibrium price and quantity
c. decrease in equilibrium price and an increase in equilibrium quantity
d. increase in equilibrium price and a decrease in equilibrium quantity
e. change in equilibrium price and quantity only if supply changes too
B
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Following the sharp increases in oil prices in the United States caused by the OPEC oil embargo of 1973–1974, U.S. automakers started building smaller, more fuel-efficient cars. This development caused the
A. demand curve for oil to shift out. B. demand curve for oil to shift in. C. supply curve of oil to shift out. D. supply curve of oil to shift in.
An economy produces 1,000,000 computers valued at $2,000 each. Households purchase 200,000 computers, of which 100,000 are imported. Businesses purchase 300,000 domestically produced computers, the government purchases 300,000 domestically produced computers, and 100,000 domestically produced computers are sold abroad. At the end of the year, the computer manufacturers hold the unsold computers in inventory. What is the value of GDP?
A. $3.8 billion B. $2.0 billion C. $1.8 billion D. $1.0 billion
If the commercial is TRUE that every additional bite of food tastes as good as the first, the marginal utility from consuming more of the advertised product must be
A) increasing. B) decreasing. C) constant. D) zero.
Refer to the diagram for a private closed economy. The equilibrium level of GDP is:
A. $400.
B. $300.
C. $200.
D. $100.