Author Question: Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the ... (Read 41 times)

imanialler · **on:** Jun 29, 2018

Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S2 (point B).

If there is an increase in number of companies producing motorcycles and a decrease in income (assume motorcycles are a normal good), the equilibrium could move to which point?
A) A B) B C) C D) E

Question 2

The term property rights refers to

A) the physical possession of a house or any other property which the owner legally purchased.
B) the ability to exercise control over one's own resources within the confines of the law.
C) the right of a business not to have its assets confiscated by the government in the event that the business is accused of committing fraud.
D) the government's right to appropriate land from wealthy land owners to redistribute to peasants.