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Question
A new car is typically considered to be a normal good. What would happen to the equilibrium price and quantity of new cars if there is a recession where many people lose their jobs?
a. The equilibrium price would rise and the equilibrium price would fall as demand shifts to the left.
b. The equilibrium price and quantity would both fall as demand shifts to the left.
c. The equilibrium price and quantity would both rise as demand shifts to the right.
d. The equilibrium price would fall and the equilibrium quantity would rise as demand shifts to the right.
e. There would be no change to the equilibrium price or quantity.
Answer
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Related questions
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b. relatively unresponsive to a change in price.
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e. completely responsive to a change in price.
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The economic entity most likely to engage in price gouging is
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Q:
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What will an individual do differently as a buyer in the black market in the long run?
a. He or she will substitute away from the product.
b. He or she will substitute toward the product.
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Q:
What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
c. A shortage will continue to exist and will grow larger over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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Q:
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a. Demand for jelly will increase along with the price.
b. Demand for jelly will decrease along with the price.
c. The supply of jelly will increase and the price will decrease.
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e. The supply of jelly will decrease and the price will increase.
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Q:
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