If the Surgeon General Announced That Wearing Baseball Caps Will

question 48

Multiple Choice

If the Surgeon General announced that wearing baseball caps will eliminate dandruff, then, ceteris paribus, the:

• A) baseball cap demand curve would shift to the left.
• B) baseball cap supply curve would shift to the right.
• C) equilibrium price of baseball caps would increase.
• D) equilibrium price of baseball caps would decrease.

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Definitions:

Informal Contract

A contract that does not require a specified form or formality in order to be valid.

Modify Terms

The act of making changes or adjustments to the conditions or stipulations of an agreement or contract.

Market Economy

An economic system where supply and demand from private enterprises and consumers freely determine the production of goods and services, prices, and distribution.

Enforcing Private Agreements

The legal process through which private contracts or understandings between parties are made obligatory and are upheld by law.