If buyers' tastes and preferences shift in favor of a good, the result is
a. an increase in quantity demanded
b. an increase in demand
c. an increase in quantity demanded and an increase in supply
d. a decline in supply
e. an increase in supply
B
You might also like to view...
The labor market is in equilibrium whenever
A) the nominal wage rate is decreasing. B) the nominal wage rate is increasing. C) the nominal wage rate is not changing. D) the real wage rate is increasing. E) the quantity of labor demanded equals the quantity of labor supplied.
Suppose that the United States and Cuba decide to open up trade. If each country specializes in the good in which it has a comparative advantage, ________ will gain from that trade because ________
A) both countries; consumption possibilities in both Cuba and the United States will lie outside their PPFs. B) neither country; their consumption possibilities will not change. C) only the United States; consumption possibilities in Cuba will lie outside its PPF and U.S. consumption possibilities will not change. D) only Cuba; consumption possibilities in Cuba will lie outside its PPF and U.S. consumption possibilities will not change.
What set of all possible combinations does the budget line show?
A. The set of all possible combinations that yield the same level of utility to the consumer. B. The set of all possible combinations that maximize a consumer's utility. C. The set of all possible combinations that can be purchased, given the consumer's income and the price of the goods. D. The set of all possible combinations that are equilibrium points.
If all the return to a resource is economic rent, we know that
A) the price of the resource is below its opportunity cost. B) the price of the resource equals its opportunity cost. C) the price of the resource is above its opportunity cost. D) the resource has no opportunity cost.