Related to the Economics in Practice on page 203: Licenses to sell hot dogs in New York City's Central Park are considerably higher than the licenses to sell hot dogs in the rest of the city. Which of the following statements regarding the above information is true?
A. Despite this, hot dogs are less expensive in New York's Central Park than in the rest of the city.
B. Due to this, hot dogs are more expensive in New York's Central Park than in the rest of the city.
C. Despite this, hot dogs sell for the same price in New York's Central Park as they do in the rest of the city because the hot dog market is perfectly competitive.
D. Despite this, hot dogs sell for the same price in New York's Central Park as they do in the rest of the city because the city regulates the price of hot dogs.
Answer: B
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The market clearing price of corn has just increased. Which of the following could have caused this change?
A) a reduction in demand B) a reduction in supply C) an increase in quantity demanded D) an increase in quantity supplied
Scarcity means
A) wants are greater than the limited resources available to satisfy these wants. B) wants are less than the limited resources available to satisfy these wants. C) resources are infinite. D) wants are limited. E) both c and d