Given the demand curve for laptop computers, if the government began to encourage households to own a computer by providing a subsidy to each family that buys one,
a. both the equilibrium price and quantity of laptops will increase
b. both the equilibrium price and quantity of laptops will decrease
c. the equilibrium price of laptops will increase but the equilibrium quantity will decrease
d. the equilibrium price of laptops will decrease but the equilibrium quantity will increase
e. subsidies to households have no effect on either the supply or demand
A
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In the presence of positive externalities, the market will choose a price that is __________ and produce a quantity that is __________ than the socially optimal price and quantity
a. higher; lower b. lower; lower c. higher; higher d. lower; higher e. impossible to know without more information about market demand and supply
The one major sport to have lost an entire season to a work stoppage was
A. baseball. B. football. C. hockey. D. NASCAR.