In each of the following situations, list what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is a normal good
a. The population increases and the price of inputs increase.
b. The price of a complement increases and technology advances.
c. The number of firms in the market increases and income increases.
d. Price is expected to increase in the future.
e. Consumer preference increases and the price of a substitute in production decreases.
a. Price increases; Quantity may increase or decrease.
b. Price decreases; Quantity may increase or decrease.
c. Quantity increases; Price may increase or decrease.
d. Price increases; Quantity may increase or decrease.
e. Quantity increases; Price may increase or decrease.
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The intertemporal budget constraint is defined as:
A) DP + DF/(1 + r) = QP + QF/(1 + r) B) V = QP + QF/(1 + r) C) V = DP + DF/(1 + r) D) DF + DP/(1 + r) = QF + QP/(1 + r) E) DP + DF(1 + r) = QP + QF(1 + r)
Nominal interest rates tend to be higher in countries with
A) higher rates of inflation. B) lower rates of inflation. C) lower real interest rates. D) Both B and C.