MACROECONOMICS
14th Edition
ISBN: 9781337794985
Author: Baumol
Publisher: CENGAGE L
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Question
Chapter 4, Problem 8DQ
To determine
To analyze: the statement given by Congressman stating that they should decontrol natural gas and get production of natural gas up to a higher level to bring down the prices.
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Students have asked these similar questions
A newspaper report states that chocolate production is failing to keep up with worldwide consumption and could fall behind by 2 million metric tons annually by 2030.
Does this create an excess demand or excess supply situation? Explain how it will affect the price of chocolates in the future.
What will happen to the market for gasoline, if both the price of air travel increases and the wages of oil field workers rise?
a) Equilibrium price rises
b) Equilibrium price and quantity increase
c) Equilibrium price and quantity falls
d) Equilibrium quantity rises
I believe that an increase in wages leads to an increase in income, which will lead to an increase in the demand for normal goods. So I have a feeling that the demand curve for gasoline will shift to the right (increase). But I don't know how the price of airline tickets would affect gasoline.
Initially, the market for nitrile gloves is in equilibrium. In applying the concepts of
supply and demand, which of the following will happen at the new equilibrium point
in the nitrile gloves market if the demand curve shifts to the right by the same
amount that the supply curve shifts to the right?
The price of nitrile gloves will increase.
The price of nitrile gloves will decrease.
The price of nitrile gloves will stay the same.
There will be a surplus of nitrile gloves in the market.
There will be a shortage of nitrile gloves in the market.
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