Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S1 (point C). Which of the following changes would cause the equilibrium to change to point B?
A) a positive change in the technology used to produce motorcycles and decrease in the price of motorcycle insurance, a complement to motorcycles
B) an increase in the number of motorcycle producers and an increase in the number of consumers who prefer riding motorcycles
C) an increase in the wages of motorcycle workers and an increase in the price of motorcycle insurance, a complement to motorcycles
D) an increase in the wages of motorcycle workers and a decrease in the price of motorcycle insurance, a complement to motorcycles
D
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When the current account balance is ______ and the financial account balance is ______, then the statistical discrepancy will be $100 billion.
a. $300 billion; $400 billion b. negative $300 billion; $300 billion c. $400 billion; negative $300 billion d. negative $400 billion; $300 billion
Assume the economy begins at the intersection of D0 S0. Suppose the government then instituted strong emission standards. How would this affect the supply curve?
A. Move along S0
B. Shift to S1
C. Shift to S2
D. No change