Answer:
b. Cannot tell the change in equilibrium quantity. The equilibrium price will decrease
Explanation:
Two things are going on here
1. Income decreases, that will shift demand inwards. People can buy fewer goods at any given price
2. New technology is discovered, that shifts supply outwards. Costs are reduced so producers can produce more at a given price
The resulting effects are that price will decrease but the result in quantity is undetermined. This can be seen with the two examples attached. In both cases, the shifting of the curves from D0->D1 and S0->S1 results in lower prices. However, in one case the equilibrium quantity goes up and in the other goes up.
Answer:
The local government issues a limited number of restaurant licenses every year. (A)
Explanation:
Bertha claims that the burgers sold by Luke's Express Diner are priced a bit too high, because they enjoy monopoly power in the town; hence with the local government issuance of a limited number of restaurant licenses every year, this will break the monopoly that Luke's Express Dinner enjoy, thus weakening Bertha's arguments.
Answer:
1) can grow either more slowly or more rapidly than real GDP.
Explanation:
Real GDP per capita is the result of dividing real GDP by the total population of a country. Real GDP per capita changes are determined by both the changes in the real GDP and the changes in the population.
If real GDP grows at a slower rate than the population, then real GDP per capita will decrease. But if real GDP grows at a faster rate than the population, then real GDP per capita will increase.
For example, real GDP grows at 3% while population grows at 2%, real GDP per capita will grow by 1%. But some countries have positive economic growth and negative population growth, so the real GDP could grow by only 2%, but since the population growth is -1%, the real GDP per capita will grow at 3%.
D. can be flipped for profit and E. has a maturity date
