Explain what will happen to the equilibrium price and quantity of hybrid automobiles if there are technological advancements in the production of hybrid automobiles while at the same time consumer preference for hybrid automobiles increases
What will be an ideal response?
Technological advancements will cause supply to increase and increases in consumer preference will cause demand to increase. Equilibrium quantity will definitely increase. Equilibrium price will depend on whether the increase in supply or the increase in demand is larger. If the supply increase is larger than the demand increase, equilibrium price will decrease. If the demand increase is larger than the supply increase, equilibrium price will increase.
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Suppose that the U.S. government required firms to pay a living wage to workers in their subsidiaries or contracting firms in developing countries. As a consequence of this requirement, wages would likely _______ to the living wage and employment would likely _________.
a. rise; increase b. fall; increase c. rise; decrease d. fall; decrease
The figure above shows the production possibilities frontier for a country. A combination of 2 million gallons of milk and 2 million gallons of ice cream is
A) attainable and production inefficient. B) unattainable. C) attainable but more than production efficient. D) attainable and production efficient. E) More information is needed to determine if the point is attainable or not.