Explain what would happen to the equilibrium price and quantity of oranges if the supply of oranges increased while the demand for oranges decreased
What will be an ideal response?
Equilibrium price would decrease. Equilibrium quantity would depend on which change was larger. If the supply increase was larger than the demand decrease, equilibrium quantity would increase. If the demand decrease was larger than the supply increase, equilibrium quantity would decrease.
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The benefit principle states that_____
a. people who benefit from the rule of law should pay taxes b. people who benefit from Social Security should voter for it c. people who benefit from a government activity should pay for it in proportion to their wealth d. people who benefit from a government activity should be those who pay for it
Which of the following evidence does not support the expected utility theory?
A) People assign disproportionately high weights to rare events. B) Risk-averse people do not engage in fair bets. C) Risk-loving people do not purchase insurance policies. D) Risk-neutral people engage in fair bets.