Suppose that the equilibrium price of pickles falls while the equilibrium quantity rises. The most consistent explanation for these observations is
A) a decrease in demand for pickles with no change in supply
B) an increase in demand for pickles with no change in supply
C) a decrease in the supply of pickles and a decrease in the demand for pickles
D) a decrease in the supply of pickles with no change in demand
E) an increase in the supply of pickles with no change in demand .
Answer: E) an increase in the supply of pickles with no change in demand .
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Real consumption tends to be
A) procyclical and less variable than real GDP. B) procyclical and more variable than real GDP. C) countercyclical and less variable than real GDP. D) countercyclical and more variable than real GDP.
The long-term impact of Munn v Illinois (1877) on regulatory efforts was
(a) to hold back federal efforts to regulate business. (b) to prevent states from regulating interstate trade. (c) to provide a temporary justification for regulating business. (d) to establish government as able to regulate all businesses permanently.