Everything else held constant, if a central bank makes a sterilized sale of foreign assets, then the domestic currency will

Suppose the market-clearing price of milk is $3.00 per gallon, but the dairy industry persuades the government to establish a legally-mandated price support at $4.00 per gallon. The newly legislated price tends to

A) increase the supply of milk. B) reduce the demand for milk. C) increase the quantity supplied of milk. D) increase the quantity demanded of milk.

When there are external economies of scale in an industry

A) firm costs decrease as individual firms expand output. B) firm costs decrease as the industry expands in size. C) firms will generally increase their size. D) firms must be located in different regions.