Which of the following would cause an increase in the equilibrium price and decrease in the equilibrium quantity of watermelon?
A) a decrease in demand and an increase in supply
B) a decrease in supply
C) an increase in demand and an increase in supply greater than the increase in demand
D) an increase in demand and an increase in supply
Answer: B
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Society faces a trade-off in all of the following situations except
A) when deciding who will receive the goods and services produced. B) when deciding how goods and services will be produced. C) when some previously unemployed workers find jobs. D) when deciding what goods and services will be produced.
A countervailing duty is a tariff that is levied to counteract
A) the dumping of goods in the domestic market by foreign firms. B) a sudden surge of imports which hurt a domestic industry. C) subsidies given to foreign firms by their own governments. D) the tariff on domestic goods that are enacted by foreign governments. E) low prices for imported goods that are made in countries with low wages.