Suppose Brad Pitt and Angelina Jolie wear matching platinum jewelry in their new movie. After the movie is released, suppose that consumers increase their demand for the jewelry and at the same time manufacturers increase the supply of the jewelry. As a result
A. the equilibrium quantity will decrease, and the equilibrium price will increase.
B. the equilibrium quantity will increase, and there is an indeterminate change in the equilibrium price.
C. the equilibrium quantity and price are both indeterminate.
D. the equilibrium price and quantity will both decrease.
Answer: B
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Which of the following will have no impact on the demand for ice cream in the short run?
a. A change in population size b. A change in the price of ice cream c. A change in seasons d. A change in consumer preferences e. A change in consumer incomes
Which of the following is most likely an example of the division of labor?
a. It is easier to be a wheat farmer in North Dakota than in Florida. b. If you live in or near a big city, it is easier to attract enough customers to operate a successful dry cleaning business or movie theater than if you live in a sparsely populated rural area. c. A restaurant divides up the task of serving meals into a range of jobs like top chef, sous chefs, less-skilled kitchen help, and servers to wait on the tables. d. Only those with medical degrees qualify to become doctors.
Both a defendant and plaintiff believe there is an 80 percent chance that the plaintiff will win $500,000 and a 20 percent chance that the plaintiff will lose and be awarded nothing (zero). If the plaintiff's litigation cost is $150,000 and the defendant's litigation cost is $200,000, the defendant would be willing to pay any amount up to ________ to settle.
A) $250,000 B) $200,000 C) $600,000 D) $550,000
A large amount of intra-industry trade is not compatible with the comparative-advantage theory of trade.
Answer the following statement true (T) or false (F)