Refer to the table above. Assume that the market for notebooks is in equilibrium. Which of the following is likely to happen if there is an increase in the school enrollment rate, other things remaining the same?
A) The equilibrium price and quantity remain unchanged.
B) Both the equilibrium price and quantity of notebooks decrease.
C) Both the equilibrium price and quantity of notebooks increase.
D) The equilibrium price increases, but the equilibrium quantity of notebooks decreases.
C
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Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket falls from $50 to $20
A) only three tickets will be sold. B) everyone will buy a ticket. C) consumer surplus decreases from $48 to $24. D) consumer surplus increases from $0 to $62.
The government, concerned about the wealth redistribution problem caused by the inequality in debt holding among the rich and poor,
a. created low denomination (low priced) savings bonds b. made special efforts to sell bonds to private citizens c. made special efforts to sell bonds to the Federal Reserve d. prohibited the sale of bonds to foreigners e. created a proportional income tax on income derived from bonds