Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If the price of good B increases, the new equilibrium is most likely to be

How does the equilibrium quantity traded change when there is an increase in supply and a decrease in demand?

A basic assumption in comparing the production possibilities curves of two nations is that those possibilities curves reflect differences in:

A. Consumer tastes and preferences B. Resource availability and technological capabilities C. The nations' incomes and income distribution D. Unemployment and inflation rates