One can say with certainty that equilibrium price will decline when supply:
A. and demand both decrease.
B. increases and demand decreases.
C. decreases and demand increases.
D. and demand both increase.
Answer: B
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For which of the following items is demand likely to be the most price elastic?
a. Tide liquid laundry detergent b. laundry detergent in general c. powdered laundry detergent d. liquid laundry detergent
Taken as a whole the balance of payments:
a. Is usually positive when a nation is healthy and negative when it is weak. b. Is usually negative when the nation is healthy and positive when it is weak. c. Must equal zero. d. Must equal GDP minus personal consumption expenditures. e. Can be positive or negative. It does not depend on the health of the country.
If the dollar used to buy 100 yen and now buys 360 yen, there has been
A. an increase in special drawing rights. B. appreciation of the dollar. C. depreciation of the dollar. D. appreciation of the yen.
Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If demand for wheat is D1, then in the long run
A. new firms will enter the industry, and the current firms will expand production. B. the firm will exit the industry. C. firms will increase their output so that their average fixed cost per unit falls. D. the firm will increase its price and output.