Society's production possibilities curve is primarily concerned with answering the economic question of what goods and services a society can produce.

Suppose the U.S. price level rose at the same time the Mexican price level remained constant. Which of the following would occur?

a. The demand for pesos would increase. b. The supply of pesos would decrease. c. The supply of pesos would increase. d. The demand for pesos would decrease. e. The supply of pesos would stay constant.

Refer to the diagram below for the milk market. In this market, the equilibrium price is ____ and equilibrium quantity is ___

A. $1.50 per gallon; 28 million gallons
B. $1.50 per gallon; 30 million gallons
C. $28 per gallon; 150 million gallons
D. $1.00 per gallon; 35 million gallons