A decrease in the demand for eggs due to changes in consumer tastes, accompanied by a decrease in the supply of eggs as a result of an outbreak of Avian flu, will result in
A) a decrease in the equilibrium price of eggs and no change in the equilibrium quantity.
B) a decrease in the equilibrium price of eggs; the equilibrium quantity may increase or decrease.
C) a decrease in the equilibrium quantity of eggs; the equilibrium price may increase or decrease.
D) a decrease in the equilibrium quantity of eggs and no change in the equilibrium price.
Question 2
Which of the following would explain why accounting profit might be greater than economic profit?
A) A firm has only explicit costs.
B) A firm's net income is greater than its accounting profit.
C) A firm's net income is less than its accounting profit.
D) A firm has implicit costs as well as explicit costs.
Female Skink with Eggs
The growth in demand for energy use is met by burning fossil fuels
The growth in demand for oil in China is driven by the growth in demand for personal transport
The demand for cheap coal to generate electrical power is rising
Economic recession in 2008 saw a small decrease in demand
Eggs are an excellent source of protein, but egg yolks are high in cholesterol