Macroeconomics

Referring to the previous question, what will happen to the equilibriu

Referring to the previous question, what will happen to the equilibrium price and quantity of cars? A) They will stay the same as domestic producers replace the cars once imported. B) The shortage will cause the equilibrium price to increase and equilibrium quantity will decrease. C) The surplus will cause equilibrium price to decrease and […]

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Date: September 10th, 2020

Assume a monopolist regularly posts price increases three months in ad

Assume a monopolist regularly posts price increases three months in advance of when they will take effect. After a small number of new firms enter the market, the original firm continues the practice of announcing price increases in advance. Following the court’s logic in the Ethyl case, the firms in this market would not be […]

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Date: September 10th, 2020

All else constant, an increase in the number of buyers in the market f

All else constant, an increase in the number of buyers in the market for cell phone service would cause: A) equilibrium price and quantity to increase. B) equilibrium price and quantity to decrease. C) equilibrium price to increase and equilibrium quantity to decrease. D) equilibrium price to decrease and equilibrium quantity to increase.   ANSWER […]

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Date: September 10th, 2020