A major grocery store chain switches from bagging groceries in paper sacks to bagging them in plastic bags. As a result, the grocery chain demands more plastic bags than are available at the current market price. As a result:
a. the market price for paper sacks is likely to increase
b. the market price for plastic bags is likely to increase.
c. the quantity of paper sacks purchased by the chain is likely to increase.
d. none of the above
b
Economics
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The ________ hypothesis suggests that errors in forecasting future inflation rates are due to random, unpredictable events.
A. chaos-theory B. stagflation C. rational-expectations D. Friedman
Economics
Suppose you purchased 500 shares of stock in 2013 for $15 a share, and the price now is $20 a share. If you sell the stock, then your capital gain is
A) $2500. B) $1000. C) $10000. D) indeterminate without knowing the inflation rate.
Economics