Suppose that a new advertising campaign extolling the virtues of apple juice is successful, and a major freeze destroys half of the country's apple cro
A) The equilibrium price of apple juice might rise or fall and the equilibrium quantity of apple juice falls.
B) The equilibrium price of apple juice rises and the equilibrium quantity of apple juice might rise or fall.
C) The equilibrium price of apple juice falls and the equilibrium quantity of apple juice might rise or fall.
D) The equilibrium price of apple juice might rise or fall and the equilibrium quantity of apple juice rises.
B
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In the above figure, if the demand curve is D2, then
A) the equilibrium price will be P1 and the equilibrium quantity will be Q2. B) the equilibrium price will be P1 and the equilibrium quantity will be Q1. C) there will be a shortage equal to Q2 - Q1. D) an increase in price will shift the demand curve to D3.
Ball's research showed that the sacrifice ratio
A) was the same for all countries. B) was nearly zero for most countries. C) was about 10 for all countries except the United States, where it was about 2. D) varied considerably across countries.