If an increase occurs in the demand for the output of industry A, we would expect all of the following to happen except:
a. an increase in the profits of industry A.
b. a decrease in prices of inputs used in the production of A.
c. an increase in the output of industry A.
d. an increase in the demand for inputs used in the production of A.
Question 2
During the peak season, when demand for pipeline transport of natural gas at the maximum legally allowable price exceeds the available capacity:
a. buy-sell transactions take place.
b. pipeline owners vertically integrate into gas production.
c. price discrimination becomes prominent.
d. pipeline owners use discretionary powers to ration capacity to shippers.
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