If the world supply of diamonds increases, the market price of diamonds decreases, and the consumer surplus derived by diamond consumers increases

According to the wealth effect, if real wealth decreases then people

A) decrease their consumption expenditure. B) increase their consumption expenditure. C) do not respond if their nominal wealth does not change. D) decrease their consumption expenditure only if their nominal wealth also decreases.

The merger of two pizza restaurant chains would be an example of

A) a horizontal merger. B) a vertical merger. C) a conglomerate merger. D) an independent merger.