A decrease in the demand for incandescent light bulbs due to changes in consumer tastes, accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions, will result in
A) a decrease in the equilibrium quantity of incandescent light bulbs; the equilibrium price may increase or decrease.
B) a decrease in the equilibrium quantity of incandescent light bulbs and no change in the equilibrium price.
C) a decrease in the equilibrium price of incandescent light bulbs and no change in the equilibrium quantity.
D) a decrease in the equilibrium price of incandescent light bulbs; the equilibrium quantity may increase or decrease.
A
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The social interest theory of regulation is that
A) regulators help producers maximize economic profit. B) regulation seeks to increase the government's revenue. C) regulation causes producers to produce at a point where they are earning normal profits. D) regulation seeks an efficient use of resources. E) regulation focuses on the consumers' interests and ignores producers' interests.
Increasing opportunity cost occurs along a production possibilities frontier because
A) resources are not equally productive in all activities. B) increasing wants need to be satisfied. C) in order to produce more of one good decreasing amounts of another good must be sacrificed. D) production takes time.