Garbage is scarce because it is abundant

Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a bagel ________ and the equilibrium quantity ________

A) rises; increases B) does not change; does not change C) falls; increases D) rises; decreases E) falls; decreases

According to Matthew Slaughter, as reported in the Case in Point on outsourcing, which of the following is a reason that suggests outsourcing might actually increase domestic employment?

A) Reduced costs make domestic firms more likely to expand the quantities they produce. B) Lower costs may lead firms to increase the scale of their operations which could generate more domestic employment. C) A firm that engages in outsourcing is likely to increase its scope of operations. D) all of the above