The effect of a change in price on the quantity bought when the consumer remains indifferent between the original and the new situation is called the

According to this Application, the longer than usual harmattan has impacted the supply curve for cocoa pods, shifting the supply curve to the ________ due to a(n) ________ in cocoa yields

A) right; decrease B) left; decrease C) right; increase D) left; increase

Suppose the economy experiences a recessionary gap. Policymakers who believe that the private sector has failed to provide adequately, a host of services that would benefit society would favor which of the following policies to close the gap?

A) subsidies to private firms to spur production B) decreases in income tax rates C) increases in government purchases D) decreases in interest rates