Suppose chocolate-dipped strawberries are currently selling for $30 per dozen, but the equilibrium price of chocolate-dipped strawberries is $20 per dozen. We would expect a
a. shortage to exist and the market price of chocolate-dipped strawberries to increase.
b. shortage to exist and the market price of chocolate-dipped strawberries to decrease.
c. surplus to exist and the market price of chocolate-dipped strawberries to increase.
d. surplus to exist and the market price of chocolate-dipped strawberries to decrease.
d
Economics
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If income increases by 2.0 percent, and quantity demanded of a good increases by 0.2 percent, the income elasticity for the good is
A) 0.22. B) 0.002. C) 0.10. D) 1.00.
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Federal Reserve liabilities are equal to
A) gold certificates + other Fed liabilities. B) bank reserves + other Fed liabilities. C) Federal Reserve notes. D) cash + loans + U.S. Treasury deposits.
Economics