: The equilibrium price of houses in the San Francisco Bay Area has risen dramatically in recent years because: View
: A local businessman points out that, as the price of VCR has fallen, sales have increased tremendously. The businessman cites this example as proof that the law of supply does not hold. Which of the following explanations best solves the paradox cited by the businessman? View
: Suppose a vaccine for the common cold is discovered. The government begins to produce the vaccine in as large a volume as possible. However, the market clearing price is very high due to high demand for it. Following this, the government introduces a price control and sets up an allocation scheme to control the vaccine’s distribution. Which of the following is likely to be true about the price control introduced by the government? View
: An increase in the demand for a commodity accompanied by a decrease in its supply will result in a(n): View
: If both supply and demand for a good increase at the same time, which of the following must also increase? View
