When People Move to an Area of the World That

question 44

Multiple Choice

When people move to an area of the world that was previously unpopulated,we expect more consumers and more producers to spring up in that area.What would we expect to happen to the price and quantity in the markets where this happens?

• A) The equilibrium price will go up and equilibrium quantity will go up.
• B) The equilibrium price will go down and equilibrium quantity will be indeterminate.
• C) The equilibrium price will be indeterminate and equilibrium quantity will go up.
• D) The equilibrium price will go up and equilibrium quantity will be indeterminate.
• E) The equilibrium price will be indeterminate and equilibrium quantity will go down.

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Definitions:

Restatement (Second)

A collection of model legal principles designed to clarify, modernize, and otherwise improve American common law, particularly in contracts and torts.

Intoxication

A state of being under the influence of drugs or alcohol, affecting cognitive and physical functions.

Legal Age

The age at which an individual is recognized by law as being capable of entering into a legally binding contract, among other adult responsibilities and rights.

Capacity to Enter

The legal ability of a person to enter into a binding contract, typically requiring them to be of a certain age and sound mind.