Suppose that the average equilibrium monthly rental price of apartments and rooms in a college town had been steady at $600, but then the college expanded enrollment from 10,000 to 12,000 . Suddenly there is a shortage of rental housing at the prevailing price of $600 . Which of the following is most likely to be true?
a. The shortage occurred because demand increased, and a new market equilibrium will result in higher rental prices and more rental units available on the market.
b. The shortage occurred because supply increased, and a new market equilibrium will result in lower rental prices and fewer rental units available on the market.
c. The shortage occurred because demand decreased, and a new market equilibrium will result in lower rental prices and fewer rental units available on the market.
d. The shortage occurred because demand increased, and a new market equilibrium will result in higher rental prices and fewer rental units available on the market.
a
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Inventories are included in GDP because
A. they are value added to final goods. B. they were produced and are sold in their final form. C. they will depreciate. D. they are considered government spending.
If the federal government began granting a subsidy of 10 cents per apple to apple growers and as a result the price of apples to consumers falls by 8 cents,
a. the actual benefit of this subsidy goes mostly to consumers. b. the actual benefit of this subsidy goes mostly to producers. c. the actual benefit of this subsidy would be shared equally by producers and consumers. d. nobody would benefit from the subsidy.
Suppose that the federal government provides wheat farmers with a price floor above the market equilibrium price of wheat, creating a surplus. Which of the following causes a reduction in the surplus of wheat?
a. An increase in the supply of wheat. b. An increase in the price of wheat. c. A decrease in the demand for wheat. d. Elimination of the price floor.
When a supervisor asks for opinions in making decisions
a. situational leadership b. participative leadership c. autocratic leadership d. laissez faire leadership