Studies have shown that drinking one glass of red wine per day may help prevent heart disease. Assume this is true, and favorable weather has increased the grape harvest of California vineyards
In the market for red wine, these two developments would
A) increase demand and increase supply, resulting in an increase in the equilibrium quantity and an uncertain effect on the equilibrium price of red wine.
B) increase demand and increase supply, resulting in an increase in the equilibrium price and an uncertain effect on the equilibrium quantity of red wine.
C) increase demand and decrease supply, resulting in an increase in the equilibrium quantity and a decrease in the equilibrium price of red wine.
D) increase demand and increase supply, resulting in an increase in both the equilibrium price and the equilibrium quantity of red wine.
A
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Which of the following can create demand-pull inflation?
a. Excessive aggregate spending. b. Sharply rising oil prices. c. Higher labor costs. d. Recessions and depressions.
The law of diminishing marginal utility holds that at some point consumption of additional units of a commodity adds less to total utility
a. True b. False Indicate whether the statement is true or false