If the price of gasoline increases, what will be the impact in the market for public transportation?
A) The quantity of public transportation demanded decreases.
B) The quantity of public transportation demanded increases.
C) The demand curve for public transportation shifts to the right.
D) The demand curve for public transportation shifts to the left.
C
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China's State Council has encouraged more spending to "improve transportation links and other infrastructure...." It will also "step up its spending on vocational training and other educational programs for adults." www.nytimes
com, Keith Bradsher, October 19, 2008 Suppose that capital goods are on the vertical axis while consumption goods are on the horizontal axis of China's PPF. As a result of enacting the policies, China's PPF will A) shift outward. B) shift inward. C) rotate outward. D) become flatter.
In order to be binding, a price floor
A) must lie below the free-market equilibrium price. B) must coincide with the free-market equilibrium price. C) must be high enough for firms to earn a profit. D) must lie above the free-market equilibrium price.