Under the voluntary export restraints, the Japanese government allocated each Japanese auto producer a certain number of cars that they could export to the United States. As a result, Japanese auto producers exported:
a. fewer and more luxurious cars to the United States.
b. fewer and less luxurious cars to the United States.
c. more luxurious cars to the United States.
d. less luxurious cars to the United States.
Ans: a. fewer and more luxurious cars to the United States.
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Suppose a concert by Lady Gaga and a basketball game played by the L.A. Lakers are substitutes, then which of the following is TRUE?
A) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will fall. B) If the price of a ticket to a Lakers game decreases, the quantity of Lakers tickets demanded will increase. C) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will remain unchanged. D) The price of a ticket to a Lakers game will always equal the price of a ticket to a Lady Gaga concert.
Suppose the demand curve for medical care services is perfectly inelastic. What will happen to the equilibrium price and quantity if supply increases?
a. Price and quantity will rise. b. Price will stay the same and quantity will rise. c. Price and quantity will fall. d. Price will fall and quantity will increase. e. Price will fall and quantity will stay the same.