Assuming competitive markets with typical supply and demand curves, which of the following statements is correct?
A. An increase in supply with a decrease in demand will result in an increase in price.
B. An increase in supply with no change in demand will result in an increase in price.
C. An increase in supply with no change in demand will result in a decline in sales.
D. An increase in demand with no change in supply will result in an increase in sales.
Answer: D
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A major factor in changing levels of imports in an open economy is:
a. real international rates of interest. b. relative international price levels. c. a change in a nation's disposable income. d. a change in transportation costs.
How would the market for coffee be affected if the government charged an excise tax of $1.00 on each unit of coffee sold?
A) There would be a shortage of coffee. B) The demand for coffee would increase. C) The demand for coffee would decrease. D) The supply curve would shift up vertically by $1.00.