If incomes grow during the next year, what will happen in the market for RVs? (Assume that RVs are normal goods.)
What will be an ideal response?
If RVs are normal, an increase in income will lead to an increase in demand. The demand curve will shift to the right. This will increase the equilibrium price of an RV and also increase the equilibrium quantity sold.
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The point where the sum of the external and decision-making costs is minimized is _____
a. unanimity b. Pareto efficient c. simple majority rule d. the optimal collective decision rule
The Constitution:
a. empowers each state to negotiate its own treaties with foreign governments. b. empowers the Congress to pay off all public debts, including those incurred by the states. c. allows for states to set tariffs on goods imported from another state. d. allows only the Congress to set tariffs on goods moving from one state to another.