The idea that tax cuts would increase the quantity of labor supplied, thus increasing tax revenue, became known as supply-side economics

Consider the following scenario. Assume the price of gold in London is selling for $1400 an ounce while in New York it is fetching a price of $1450 an ounce

What would an economist say about the efficiency of this market? What would an economist predict about what would happen next?

Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect the

a. demand for flour to increase. b. demand for flour to decrease. c. supply of flour to increase. d. supply of flour to decrease.