Consider the two graphs above. Suppose that improvements in storage technology reduce inventory losses. This would ________ the desired level of inventories, as depicted in graph ________
A) increase; B
B) increase; A
C) decrease; B
D) decrease; A
A
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Professional baseball teams in the United States use only wooden bats. If aluminum bats were permitted, the impact on the wooden bat market would be
A. a higher price for wooden bats. B. a lower price for wooden bats. C. an increase in the number of firms producing wooden bats. D. higher wages for workers in the wooden bat industry.
The sharp decline in domestic freight costs during the antebellum period was primarily due to the introduction of:
a. railroads. b. paved roads. c. clipper ships. d. canals and steamboats.
Rent controls are examples of which of the following?
a. price ceilings b. price floors c. equilibrium prices d. subsidies
If excess demand exists in a market, then
a. excess supply will emerge to absorb the excess demand b. the quantity supplied is less than the quantity demanded c. the quantity demanded is less than the quantity supplied d. the equilibrium price will fall e. the price will fall