Suppose it is discovered that consumption of butter leads to a longer life. This information would lead to
A) an increase in quantity demanded.
B) an increase in demand.
C) a decrease in quantity demanded.
D) a decrease in demand.
B
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Suppose there are four firms that are each willing to sell one unit of a good. Each firm has a different minimum price that they are willing to sell for: Firm A $6, Firm B $7, Firm C $10, and Firm D $12
If the market price is $11 then the market supply for this good will be A) 3 units. B) 4 units. C) 1 unit. D) 2 units.
Nine friends who love the beach decide to pool their financial resources and equally share the cost of a one-week house rental on Nantucket. Suppose that the beach outside of the house becomes more congested when the nine additional people join the other beachgoers. Which of the following statements is not correct?
a. Use of the beach by the nine new beachgoers will yield a negative externality. b. The town can reduce the congestion externality by raising the fee to access the beach. c. An increase in the fee to access the beach could be viewed as a corrective tax on the externality of congestion. d. Each of the nine friends would have been better off staying at home.
Suppose a cereal firm, Nabisco, merges with both a wheat firm and milling firm. This is an example of a
A. vertical merger. B. parallel merger. C. diagonal merger. D. horizontal merger.
The Federal Reserve's long standing tools includes
A. changing the reserve ratio. B. labor regulations. C. government spending policies. D. tax rate changes.