What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that coffee prevents heart attacks?
a. Both the equilibrium price and quantity would increase.
b. Both the equilibrium price and quantity would decrease.
c. The equilibrium price would increase, and the effect on equilibrium quantity would be ambiguous.
d. The equilibrium quantity would increase, and the effect on equilibrium price would be ambiguous.
d
Economics
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Refer to Scenario 17.1. An employer who only wants to hire individuals who find learning less costly can do so by choosing y* to be anywhere between
A) 7 and 14. B) 8 and 13 1/3. C) 10 and 16. D) 13 1/3 and 20. E) 14 and 20.
Economics
Using Figure 3 below, suppose that the economy was at Y3. This level of GDP would be considered:
A. inflationary.
B. recessionary.
C. a long run level of output.
D. a natural rate of output.
Economics