If the expected return on bonds increases, all else equal, the demand for bonds increases, the price of bonds ________, and the interest rate ________
A) increases; decreases
B) increases; increases
C) decreases; decreases
D) decreases; increases
A
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A binding price ceiling is presented graphically as a(n):
a. price at equilibrium. b. price below equilibrium. c. price above equilibrium. d. inefficiently low quality of the good provided.
A decrease in input costs in the production of LCD televisions caused the price of LCD televisions to decrease. Holding everything else constant, how would this affect the market for video game consoles (a complement to LCD televisions)?
A) The demand for video game consoles would decrease and the equilibrium price of video game consoles would decrease. B) The demand for video game consoles would decrease because consumers could afford to buy fewer LCD televisions and video game consoles. C) The supply of video game consoles would increase and the equilibrium price of video game consoles would decrease. D) The demand for video game consoles would increase and the equilibrium price of video game consoles would increase.