(Use the graph of the wheat market in Economic Insight 9.1, on p. 162 of the text.) S1 shows the supply curve for wheat in the local market. S2 shows the supply curve for wheat in more distant markets in the early 1800s. S3 shows the supply curve for wheat in more distant markets in the mid-1800s. Given the information provided, we can conclude that
a. the price that wheat producers received per bushel rose from P2F to P2C during the antebellum period.
b. the price paid by wheat buyers in distant markets fell from P2C per bushel to P3C per bushel during the antebellum period.
c. in the mid-1800s, wheat buyers in distant markets paid P3F per bushel and wheat producers received P3C per bushel.
d. wheat producers received a price of P3C for wheat in the early 1800s.
b. the price paid by wheat buyers in distant markets fell from P2C per bushel to P3C per bushel during the antebellum period.
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Which of the following would cause the nominal exchange rate to depreciate?
A) The real exchange rate appreciates. B) The domestic inflation rate increases. C) The foreign inflation rate increases. D) The government budget deficit increases.
Which factor would facilitate tacit collusion among firms in a market?
a. an increase in the number of firms. b. a decrease in the probability the market will continue into future periods. c. a decrease in the interest rate. d. none of these.