A drought in California destroys many red grapes. As a result of the drought, the consumer surplus in the market for red grapes
a. increases, and the consumer surplus in the market for red wine increases.
b. increases, and the consumer surplus in the market for red wine decreases.
c. decreases, and the consumer surplus in the market for red wine increases.
d. decreases, and the consumer surplus in the market for red wine decreases.
d
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In international trade, an infant industry is one:
A. that protects firms that produce products for infants. B. with a large number of very small firms. C. in which the firms are experiencing very small profits. D. in the early stages of its development.
Which of the following would cause the aggregate demand curve to decrease, ceteris paribus?
a) An increase in income taxes. b) An increase in the value of the stock market. c) Strong performance of foreign economies. d) A decrease in interest rates.