Suppose that video game discs are a normal good. If the income of video game players increases, you predict that in the market for video games,
A. equilibrium price will increase, and quantity will decrease.
B. both equilibrium price and quantity will fall.
C. both equilibrium price and quantity will increase.
D. equilibrium price will fall, but quantity will increase.
Answer: C
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A) Saving B) Expected rate of inflation C) Real interest rate D) Real income
The practice of medicine in the United States came under widespread regulation _____
a. before the Civil War b. between the Civil War and World War I c. between World War I and World War II d. after World War II
As a result of current laws banning the sale of human organs, the supply of human organs ______ as demand increases.
a. steadily rises b. steadily declines c. remains constant d. sharply rises
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher