Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for sushi if the Surgeon General announces that a majority of the raw fish that is imported to make sushi contains high levels of toxic mercury?
A) D decreases, S no change, P and Q decrease.
B) S decreases, D no change, P increases, Q decreases.
C) D and S decrease, P and Q decrease.
D) D no change, S increases, P decreases, Q decreases.
Answer: A
Economics
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The short-run aggregate supply curve is positively sloped because
A) real interest rates rather than nominal rates are used. B) no price adjustments take place in the short-run. C) complete price adjustments take place in the short-run. D) some price adjustments take place in the short-run.
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The decrease in investment that occurred as a result of banks being unwilling to lend to businesses after the collapse of the housing bubble caused aggregate:
A. supply to increase. B. demand to increase. C. supply to decrease. D. demand to decrease.
Economics