If the demand for a good increases at the same time the supply of the good decreases, what happens to equilibrium price and quantity?
A. Equilibrium quantity increases, but the effect on equilibrium price is ambiguous.
B. Equilibrium quantity decreases, but the effect on equilibrium price is ambiguous.
C. Equilibrium price increases, but the effect on equilibrium quantity is ambiguous.
D. Equilibrium price decreases, but the effect on equilibrium quantity is ambiguous.
C. Equilibrium price increases, but the effect on equilibrium quantity is ambiguous.
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A country opens up to trade and imports clothing. In the clothing market, surplus has been redistributed from
A) producers to consumers. B) consumers to producers. C) government to consumers. D) producers to government.
Economists assume that, in general, when individuals are faced with two choices that have the same expected value, they will prefer:
A. the one with higher risk. B. the one with lower risk. C. the one with the higher opportunity cost. D. the one with the lower future value.