Suppose that the price of flour used to produce bagels increases. ...

[rmenurse]

Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a bagel ________ and the equilibrium quantity ________.
 
  A) rises; increases
  B) does not change; does not change
  C) falls; increases
  D) rises; decreases
  E) falls; decreases

Question 2

New growth theory asserts that
 
  i. human capital grows because of choices.
  ii. discoveries result from choices.
  iii. competition brings profits.
  A) i only B) ii only C) iii only D) both i and ii E) both i and iii

[GCabra]

Answer to Question 1

D

Answer to Question 2

D