Referring to the previous question, what will happen to the equilibrium price and quantity of cars?
A) They will stay the same as domestic producers replace the cars once imported.
B) The shortage will cause the equilibrium price to increase and equilibrium quantity will decrease.
C) The surplus will cause equilibrium price to decrease and equilibrium quantity to increase.
D) The shift in the demand curve will cause equilibrium price to increase and quantity to increase.
B
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How would government's role differ between the balanced and unbalanced growth models?
What will be an ideal response?
If the real interest rate is 2% and expected inflation is 2%, the nominal interest rate is:
A) 0% B) 1% C) 2% D) 4%
The "police power" of government to control business
(a) was exercised during the colonial period but lapsed when the Constitution was written. (b) was exercised during the colonial period and carried over to the new nation; it still exists today. (c) was not widely exercised during the colonial period but assumed greater importance in the new nation. (d) was important in England but was never important in the Americas, either before or after the Revolution.
Which of the following markets is closest to a monopoly?
A) a firm with a 90% market share B) the only gas station for 100 miles C) cable television D) garbage disposal