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Question
If consumers are willing to pay a higher price than previously for each level of output, we can say that the following has occurred:A. a decrease in demand.
B. an increase in demand.
C. a decrease in supply.
D. an increase in supply.
Answer
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Related questions
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If the price of product L increases, the demand curve for close-substitute product J will:
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If two goods are complements:
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B. an increase in the price of one will increase the demand for the other.
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An increase in the price of a product will reduce the amount of it purchased because:
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Q:
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Q:
According to the text, what is the largest source of earned income for U.S. households?
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According to the text, U.S. corporations generate approximately what percentage of total sales revenue?
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In the circular economic flow diagram, households:
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Refer to the above figure. If box A represents businesses and box D represents the product market in this circular flow model, then money flow in the model would be represented by:
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Q:
Refer to the above figure. If flow (1) is the cost businesses pay to the resource market, then:
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Refer to the above figure. If box A represents businesses and flow (7) represents goods and services, then:
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B. box D is the product market and box B is households.
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Refer to the above table. If demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5), equilibrium price and quantity will be:
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Suppose that corn prices rise significantly. If farmers expect the price of corn to continue rising relative to other crops, then we would expect:
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Q:
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Q:
Suppose an excise tax is imposed on product X. We would expect this tax to:
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Q:
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Q:
If there were a market for pollution rights established by a public agency that determined the amount of pollution that the atmosphere or a body of water can safely absorb, and the agency sold these rights to polluters, we could expect that:
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Q:
In a market economy with well-defined property rights, the potential threat of a lawsuit or a liability judgment against a firm will give firms an incentive to:
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Q:
One condition for individual bargaining to occur, according to the Coase theorem, is that there must be:
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D.government creation of a market for externalities.
Q:
Refer to the above supply and demand graph. Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective. If government decides to correct this externality with a subsidy to consumers, then the:
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Q:
When producing a good generates negative externalities, the private market for that good tends to produce too:
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B.much of the product at too high a price.
C.little of the product at too low a price.
D.little of the product at too high a price.
Q:
In a free-market economy, a product that entails a spillover benefit will be:
A.overproduced.
B.underproduced.
C.produced at the optimal level.
D.associated only with goods and services provided by the government.
Q:
A government is considering undertaking one or more construction projects. The estimated marginal cost and benefit of each project are given in the table. Refer to the above table and information. What is the total cost and total benefit of projects 1, 2, and 3?
A.Total cost is $18 million and total benefit is $19 million.
B.Total cost is $24 million and total benefit is $27 million.
C.Total cost is $37 million and total benefit is $41 million.
D.Total cost is $65 million and total benefit is $66 million.