Which of the following events could result in the consumption function shifting from CF0 to CF1?
A) a decrease in wealth
B) an increase in expected future income
C) a decrease in disposable income
D) an increase in disposable income
E) an increase in the real interest rate
B
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Which of the following is an effect of a price ceiling set below the equilibrium price?
A) Less of the good is produced with the ceiling than would be produced without the ceiling. B) The price ceiling has no effect on the market equilibrium. C) Consumers can buy more than they can at the equilibrium price because the ceiling price is lower. D) None of the above answers is correct.
Which of the following does NOT shift the demand curve for broccoli?
A) an increase in the cost of fertilizer used to grow broccoli B) a warning by the U.S. Surgeon General that broccoli causes schizophrenia C) an increase in the price of spinach, a substitute for broccoli, because rodents gobbled up much of this year's spinach crop D) a decrease in the price of spinach, a substitute for broccoli, because of a bumper crop of spinach this year