If the firm in the figure above is unregulated, the consumer surplus will be

A shift away from expenditures on domestic goods and a shift toward expenditures on foreign goods when the domestic price level increases is known as

A) the interest rate effect. B) demand side inflation. C) the real-balance effect. D) the open economy effect.

Suppose the equilibrium price of a gallon of gasoline drops from $3.00 to $2.85 and the equilibrium quantity increases from 365 millions of gallons per week to 372 millions of gallons per week. These changes can be the result of

A) an increase in supply. B) an increase in demand. C) a decrease in supply. D) a decrease in demand.