Consider a market that is in equilibrium. If it experiences an increase in demand, what will happen? The demand curve will shift to the:
A. right, and the equilibrium price and quantity will rise.
B. right, and the equilibrium price will increase and the equilibrium quantity will decrease.
C. right, and the equilibrium price and quantity will fall.
D. left, and the equilibrium price and quantity will fall.
A. right, and the equilibrium price and quantity will rise.
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One way to view equilibrium in the simple Keynesian model without government spending and taxes is that:
A) saving equals planned investment. B) saving equals planned expenditures. C) saving equals planned autonomous spending. D) None of the above.
A primary difference between rebates and coupons?
A) Coupons allow individuals to sort themselves into the high-elasticity group after the sale. B) Neither coupons or rebates are redeemed in high numbers. C) Rebates allow individuals to sort themselves into the high-elasticity group after the sale. D) Coupons are legal and rebates are illegal.